During the pandemic the price of used cars started to rise. Did we attribute that to people with more money who can then get higher credit on the now more expensive cars?
No, we attributed it to a lack of supply of cars, and worked to free up the blockages so that the market would return to its correct state where cars depreciated.
It's the same problem with housing. We need to build an awful lot more, and we need to move the work to where we build the houses.
Once we cross the rubicon and house prices start to depreciate, as they should because they wear out, then we'll see a phase shift in the market and vastly more supply. It'll be like the latent heat of condensation.
Housing prices vary inversely with interest rates. Monthly payments are and always have been between 1/4 and 1/3 of income. This is actually up right now due to the bubble which cant last.
During the pandemic the price of used cars started to rise. Did we attribute that to people with more money who can then get higher credit on the now more expensive cars?
No, we attributed it to a lack of supply of cars, and worked to free up the blockages so that the market would return to its correct state where cars depreciated.
It's the same problem with housing. We need to build an awful lot more, and we need to move the work to where we build the houses.
Once we cross the rubicon and house prices start to depreciate, as they should because they wear out, then we'll see a phase shift in the market and vastly more supply. It'll be like the latent heat of condensation.