4 ms·
Cornering the market, or a sufficiently large portion of it, doesn't necessarily drive prices higher. Demand plus cheap credit (and Wall Street shenanigans) ar
by mikece 2y ago
Cornering the market, or a sufficiently large portion of it, doesn't necessarily drive prices higher. Demand plus cheap credit (and Wall Street shenanigans) are at least as much to blame.
- JumpCrisscross 2y ago> Demand plus cheap credit (and Wall Street shenanigans) This is unfalsifiable voodoo. It can be used to describe practically any economic phenomenon.
- the_gastropod 2y agoInterest rates tripled in the past few years, and home prices continued their upward march throughout most of the U.S. Do you mean something else by "cheap credit"?
- sroussey 2y agoTripled from a hundred year low. Kinda normal to mildly low still. Prices are up since people did 30yr mortgages at obscenely low rates, and don’t sell/move in order to keep them. That group will eventually rotate out. Ironically, somewhat lower rates will cause a housing price decline.
- sirspacey 2y agoUnless you are willing to hold the asset at 40% occupancy without changing prices because preserving the on paper value is more important than profiting from rent. Then you get New York City.
- dan-robertson 2y agoThis is maybe a stupid question, but if credit is cheap, shouldn’t it be easier to finance a housebuilding operation? In the very low interest rates from say 2008-2020, I think we saw less housebuilding in the United States than before.