Inflation-adjusted home prices in China have fallen below where they started two decades ago, and the fiscal fallout is hitting local governments even harder than developers.
It’s great for people who want to buy a house, great for ultra rich that want to buy out more property, but absolutely fucking people who just bought a house not too long ago.
If you just bought (assuming standard 30 yr mortgage), all you have to do is hold through it. Refinance if that becomes favorable.
The only losers are those who are free and clear or toward the end of their mortgage AND looking to utilize the equity they built up, OR anyone looking to sell. The solution is time, which can kinda suck, but it’s vastly preferable to not having a place to live.
The solution is only time if market starts bubbling again, like it did after the last crash. Its also possible for asset prices to stagnate for decades, and its happened before.
I feel like people forget that a significant portion of America lives in a place where the cost-of-living isn’t ridiculously high. A housing crash might make houses slightly more affordable in San Francisco, but it would be economically devastating to the interior of the country.
Honestly it probably wouldn’t even be that great for people who wanted to buy a house. Banks aren’t likely to start handing out mortgages to people who couldn’t afford the house a couple weeks ago in what is now a volatile market, and you would still be competing with companies who could pay cash.
why? yiu bought a home to live in right ? you can still live in it. thet they’re now cheaper for other folks who couldn’t afford a home before, is a good thing.
It’s great for people who want to buy a house, great for ultra rich that want to buy out more property, but absolutely fucking people who just bought a house not too long ago.
If you just bought (assuming standard 30 yr mortgage), all you have to do is hold through it. Refinance if that becomes favorable.
The only losers are those who are free and clear or toward the end of their mortgage AND looking to utilize the equity they built up, OR anyone looking to sell. The solution is time, which can kinda suck, but it’s vastly preferable to not having a place to live.
The solution is only time if market starts bubbling again, like it did after the last crash. Its also possible for asset prices to stagnate for decades, and its happened before.
I feel like people forget that a significant portion of America lives in a place where the cost-of-living isn’t ridiculously high. A housing crash might make houses slightly more affordable in San Francisco, but it would be economically devastating to the interior of the country.
Honestly it probably wouldn’t even be that great for people who wanted to buy a house. Banks aren’t likely to start handing out mortgages to people who couldn’t afford the house a couple weeks ago in what is now a volatile market, and you would still be competing with companies who could pay cash.
why? yiu bought a home to live in right ? you can still live in it. thet they’re now cheaper for other folks who couldn’t afford a home before, is a good thing.
These are Mom and pop speculators. There are entire cities in China with empty housing bought on speculation. The appeal of free money was too great.