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>Housing? Yep mortgages, people can rarely afford a house without a large mortgage Bad example, mortgages keep jumping because property values keep increasing.
by delfinom 2y ago
>Housing? Yep mortgages, people can rarely afford a house without a large mortgage
Bad example, mortgages keep jumping because property values keep increasing. Property values keep increasing because demand is exceeding supply. As more people can access mortgages due to lower rates, the demand shoots up and so does the property value which leads to a race to the top (bottom). Lol
>Cars? Yep, most cars are bought on finance, people couldn’t buy new cars without the finance.
Yea here we don't have a real lack of car supply. People are financing based on _wants_ rather than needs.
- yterdy 2y ago>Property values keep increasing because demand is exceeding supply. Not quite. Property values keep increasing because the monetary supply keeps increasing, one effect of which is that large property owners can corner markets by buying up properties and warehousing them until they see the prices they want to sell for. This appears as a lack of supply (not enough houses) when it's really a lack of market forces forcing sales (not enough houses on the market). The remedies to these two situations are very different.