US Economy Shows New Signs of Weakness with Housing and Manufacturing Slumps | Sweden Herald
US Economy Shows New Signs of Weakness with Housing and Manufacturing Slumps | Sweden Herald
People couldn't afford houses BEFORE they decided to slap on taxes to wood [the main material] and steel [another common material in homes], as well as deporting the demographic that tends to build most of them...
I feel we are in that period where housing is sorta being ignored. Like in 2008 no one was talking about housing doing poorly it was only later it was recognized.
How will this affect house prices?
Housing prices are sticky to go down because they're also an investment. People (in aggregate) have a tendency to hold rather than sell at a loss. Also note it varies significantly across geographies.
Edit: also houses are not liquid so that also adds to the stickiness of pricing. It takes time for price signals to develop due to the slow (often over a month) & infrequent nature of transactions. It also matters that there's an industry of professionals who benefit from keeping prices higher.