Reply to Impending Recession and Selling Our Condo

Forum Index » Real Estate

Reply to "Impending Recession and Selling Our Condo"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Anyone who tells you that housing prices will drop significantly in the next year in the event of a recession does not understand enough about the housing market to be trusted.

If there's a recession this time, it's unlikely to be primarily a financial crisis. So, access to credit will not decline much.  Moreover, interest rates will almost surely reach historic new lows which supports continued growth in asset prices such as housing that are primarily financed by leveraged debt.  And, housing supply growth has been anemic for years, unlike the rapid supply increases of the early 2000s which deepened the 2008 crisis.

Could housing prices be relatively flat? Sure. Could the luxury housing market soften more? Sure. But with the exception of 2008 (a financial crisis that formed in the housing sector), national housing prices have never declined significantly in the event of a recession.  There's absolutely no fundamental reason to believe that they will do so this time, and several fundamental reasons to believe that they won't.

-An economist[/quote]

After 2008 I trust economists about as much as I trust the ouija board in my attic.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics