Reply to Will houses ever become affordable again?

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Reply to "Will houses ever become affordable again?"

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[quote=Anonymous][quote=Anonymous]Our only true hope is if Biden is reelected. And even then it would require an enormous number of stimulus check sent to undo the rapid increase in prices. I have serious doubts that Congress has the fortitude to pass this.[/quote]

I'm curious because if you look at the Trump years, housing was more affordable and inflation was extremely low, so why would you pick Biden if you want more affordability because it's under Biden that housing became extremely unaffordable. I'm not excusing Trump as I don't like the man, but it's denial to pretend the economy wasn't great for his tenure and real wages were outpacing inflation, until COVID hit and distorted everything but he wasn't responsible for COVID.

Our current situation is 100% related to how we reacted to COVID with massive stimulus infusion and sending interest rates to record lows that lasted through 2022. Most people with mortgages have extremely low interest rates by now, meaning they have golden handcuffs and can't sell to trade up as people normally do, restricting the supply of housing. Then sharply higher interest rates in a short period has made housing even more unaffordable. On top of this is enduring inflation that is turning out not to be transitionary.

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