“Sorry, but I know a lot of first time homebuyers who have struggled to buy a house in recent years”
I agree and have compassion for the first-time homebuyer that struggled to buy a house. If they purchased prudently and cautiously, they’ll be able to move up in a few years.
If they overbought and are now upside-down in a house they can’t afford, then they will learn a valuable lesson out of this.
Anyone who is adversely affected by the declining market, no matter how stupid or greedy or unlucky or naive they were to get themselves into this situation will be able to recover.
It will take time and delayed gratification, but everyone can recover if they are willing to take the effort.
That can and will recover if the fed acts and minimizes the downturn. The vast majority will weather the storm if we only see the 1-2% drop we are currently seeing. But if we had a stupid fed, which it by all appearances we do not, they could shut down the housing market and we could see double digit declines which would cause millions to bail on their mortgages. I am glad Ben is in charge. He seems to be calming the seas.