Slowing down the housing market is HOW you bring down inflation.
I disagree. I think the bigger culprit is that anyone who was even thinking of moving or buying a first home in the next five years has already done so.
At the end of 2019 I had no interest in moving. Within six months I had made up my mind that I was not only going to move, but I was going to move into a much bigger home that was going to become the new "headquarters" of my business. It took two years to get everything lined up, but I found the perfect place and made it happen.
“..Biden and Powell are clubbing us to death....”
Very good analogy.
We’re like baby seals be clubbed to death for our pelts (assets).
No way would I even consider buying until prices come back down a good bit. The price run up in the last 2 years has been ridiculous.
Everybody and their mother knows that a housing price correction is inbound.
The only people that deny it are those in that want to get a property sold.
One anecdote. My barber yesterday told me of a friend trying to sell her house. She’s had fourteen people look at it recently and it hasn’t sold yet. Up until a few months ago, similar houses in the same neighborhood sold after one or two people had viewed them. The seller is starting to get worried.
People that bought their house recently will soon be underwater.
The good news is that few of them did it with nothing down and a variable interest rate loan, so we should see much fewer defaults than in 2008.
Though if we go into a recession and higher unemployment that would very likely result in more defaults.