RE: Are We In A Bubble Or Is It Incorrect Measurements

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This is true that as we are printing more and more money this have effect of price of these things. But in the specific example about housing market there are other factors as well. Specially if I talk about similar housing situation in my own country - Ireland.
House prices are crazy these days not just because of reason you mentioned above but because of lockdown:

  1. People spent less last year on travel and other things so they have some spare money to spend. This can act as a deposit for house. So increased demand.
  2. Construction is slow because of restriction so there is a shortage of supply.
  3. Government relaxed the rules for deposit requirement so you need less initial deposit . This increased the demand.

These are a few reasons why housing market is booming here.



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I find that more of a post rationalisation, yes some people are upgrading their homes, yes some people are moving out of cities, yes some people are refinancing, but those to me are at the margins and don't warrant a 17% increase in price in a year. there is no population or migration boom, as far as I can see since many countries are on lock down and as you mention travel is restricted.

In theory, housing prices should be coming down as debt is defaulted on which is typical of a recession and supply comes on to the market.

That's why I'm conflicted like is it just money printing keeping the debts rolling over and artificially holding back supply from entering the market or are we just measuring in something that's so fucked up we cant tell up from down anymore

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