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A comment on Homes in 97% of U.S. cities are overvalued, Moody's says. Parent comment

Re:Homes in 97% of U.S. cities are overvalued, Moody's says by snowwrestler on Thursday May 05, 2022 @09:57PM (#31280395)
Stocks would be an obvious point of comparison. They’re down but real estate prices remain up.

The argument for overvalued housing is that everyone got antsy during the pandemic and wanted to change houses and change neighborhoods, but that will settle down now that the pandemic is waning.

Tech stocks seem to be falling because the pandemic-driven surge of screen time is fading now that the pandemic is waning.

So: is real estate entirely different from stocks? Or will it see a similar post-pandemic slump but just has more lag?

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Re:Homes in 97% of U.S. cities are overvalued, Moody's says by majormajor on Thursday May 05, 2022 @11:27PM (#31280977)
Stocks are still massively up even today (S&P 500, Dow, Nasdaq) since early 2000, the "before times" for much of this current real estate spree.

S&P 3400 in Jan 2020, 4146 today.

Dow 28,600 to almost 33,000 today.

Nasdaq 9000 to 12,300 today.

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Re:Homes in 97% of U.S. cities are overvalued, Moody's says by akomtu on Friday May 06, 2022 @12:49AM (#31281423)
Tech stocks falling won't necessarily lower home prices. The number of tech employees is growing rapidly, but the number of houses for sale isn't, so if ten years ago it was enough to win the bidding war against the top 10%, now you compete with the top 5% and their finances, even with lower stocks, are a lot better. By 2050 it will be a competition among the top 1%.
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