Some prices are dropping, if you want to risk buying houses that can't be insured. Although a bank won't give a mortgage for those, so there is no winning.
this post was submitted on 28 Feb 2025
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House prices are set by supply & demand.
House builders won't overbuild as it harms their sale prices so that won't cause an oversupply.
The only way that the ratio can change in the buyers favour is if suddenly an ungodly number of people die for some reason or the general population's finances collapse to the point where they are no longer trying to buy a house. You're likely to be one of the victims if either of those things happen. All you can do is keep saving.
Housing market collapses don't happen in low confidence events. They happen due to overconfidence leading to excessive lending at high rates and then a sudden sharp decrease in capital availability with which to repay those loans.
At any given time you might have high rates and decrease in capital, or you might have excessive lending, but it's difficult to get all of those factors at once. Especially given how sensitive investors are to such a collapse, as some of them would withdraw investments far ahead of any large events, which would lead to stability in the market as the eventual crash ends up being far less steep.
Any major housing crash will probably affect your ability to purchase a home. The real solution is laws limiting property investment combined with building new, dense housing in areas that already have services.
The $500,000 house will be $250,000 but the 6% interest rate will be 24% and the 10% deposit will be 25%.
fuck BlackRock and Merz with it!
TBH I've got nothing against them. They might own like 3% of everything but they've got full control of nothing. Where there is capital to be made, merchants will come.
If people would just vote for regulation and restrictions on real estate investment the problem would disappear.
Vanguard and State Street too. All three together run the US, thanks to Reagan’s privatization of retirement accounts.
During a collapse, what stops them from swooping in and buying up cheap property?
Bullets
the inability to be able to rent it at a profit usually. If they don't think they can get money out of it, they won't want to. If the economy hits a point where the housing market collapses, chances are they aren't going to want to risk the buy in knowing that they likely won't be able to sell for equal amount.
Or the much faster method: the "scary" government regulating it
The belief that it'll stay cheap and they won't make money
A lot of times they're correct. Home maintenance is expensive, if it doesn't get bought up and renovated it'll just end up on an endless list of foreclosures.
Millennials that bought in their 20s or early 30s are doing fine, gen Z in the other hand...
Lol, with what money do you think the millennials are doing this?
https://www.cbsnews.com/amp/news/buying-a-house-first-time-homebuyer/
i am a millennial that bought a house with a restaurant job back in 2012, because they were cheap snd interestes was low, if i had waited i would be screwed, i don't think i could afford a house now
Been waiting since 2008.
#blackrockmatters