IF you have the time, can you please explain to me how the steep rise in oil prices will bring about an 80 percent decrease in current housing values?
This is NOT an "argumentative" question ... rather, I'd like to learn more about this issue.... as even to someone as ignorant as I am about real estate, it does seem that house prices are starting to resemble those of the mid-1990s ------- BUT, an 80% decrease - wouldn't that topple housing values to something like 1950s/1960s prices?
OR... am I totally confused and not understanding the jist of the article?
Thanks!
“IF you have the time, can you please explain to me how the steep rise in oil prices will bring about an 80 percent decrease in current housing values? “
I don’t think I made that assertion and am NOT a financial guru. However, IMO our economy is based on oil. The price of oil effects everything in the economy.
The more we spend on oil the less we have to spend on anything else. That “anything else” also becomes much more expensive because its producers are spending more on oil and their supplies. So the costs cascade thru the economy.
As for the housing market; if the economy dies the ability to pay for housing will decline forcing prices down.