25 sats \ 4 replies \ @Undisciplined 27 Feb \ on: Real estate prices are rising: good news - the Fiat pump is working again econ
Something's off here. People increasingly can't afford the current home price and interest rate combination, houses have been sitting on the market longer than they had been, and commercial real estate looks like a disaster.
I still expect the housing market to collapse in the near future, but we'll see.
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Demand is the willingness and ability to pay for something. It doesn't really make sense to say demand is high despite an inability to pay.
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See your point, but whilst many are being priced out, not everyone is. Those still able to afford it are funding higher prices because demand is still higher than supply, even though lots of us, particularly the younger generations, are priced out. The two developments are not mutually exclusive because the housing market is made up of many different segments.
I kind of agree that house prices should fall on a historical basis, but they are not; Im just trying to reason out why that is. Could be wrong...
I kind of agree that house prices should fall on a historical basis, but they are not; Im just trying to reason out why that is. Could be wrong...
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I agree with that, but I don't fully understand who it is that's buying all these homes.
If it's driven by flight out of NYC, LA, SF, or DC, then it makes sense to me. Selling a home there would give you plenty of money to buy a home in the growing mid-size metros. However, there should be a corresponding decline in the major metro housing markets.
My other thought, is that people may also be moving out of apartments in cities and into homes.
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