When they, and others, are forced to liquidate houses which they bought thinking real estate only goes up, the market will be flooded with distress properties. What do you think will happen to home values then?
All adjusted to the deflation of the money supply.
If currently a dollar is worth a dime (I hear it's much less) then a 350k house would only be 35k if the dollar were fully valued at 100 cents. It takes ten times the money to covertrhe value now.
Home values will correct about -30-40% but there's a large number of upper middle class people stuck renting who will absorb a lot of that inventory with home purchases.
It'll hurt the smaller real estate rental property people who bought when the market was up and need high rents to cover all their mortagages but they'll be able to sell into the wave and recover enoughcapital to spring back when the prices stabalize again.
When they, and others, are forced to liquidate houses which they bought thinking real estate only goes up, the market will be flooded with distress properties. What do you think will happen to home values then?
All adjusted to the deflation of the money supply.
If currently a dollar is worth a dime (I hear it's much less) then a 350k house would only be 35k if the dollar were fully valued at 100 cents. It takes ten times the money to covertrhe value now.
Home values will correct about -30-40% but there's a large number of upper middle class people stuck renting who will absorb a lot of that inventory with home purchases.
It'll hurt the smaller real estate rental property people who bought when the market was up and need high rents to cover all their mortagages but they'll be able to sell into the wave and recover enoughcapital to spring back when the prices stabalize again.