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Real Estate
Reply to "Why do expert say: Buckle in for a brutal free-fall in home prices - Housing Bubble"
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[quote=Anonymous]The longer we wait for this price decrease that’s predicted, the more likely it won’t happen. Our money supply doubled and there is a very high change that inflation is entrenched in housing prices. Yes, interest rates may have an effect but there are many variables besides interest rates that affect supply and demand. If the economy stays relatively normal and low unemployment, how would it make sense for housing prices to drop dramatically while the price of everything else stays stable or increases? We will need to see large increases in unemployment. Unfortunately, I don’t think this drop is going to happen. The Fed was successful in calming down the market as it seems we are no longer seeing large month over month increases in price. But there’s a difference between calming the market and a free fall in prices. [/quote]
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