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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 nwiswell on Thursday May 05, 2022 @10:41PM (#31280676)
M1 is a useful tool to understand why the prices of consumer goods have increased but not at all useful to understand home buying power.

People regularly sell stocks, bonds, and other homes in order to produce the down payment for a mortgage and have done so since long before 2020. M1 does not measure any of these.

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Re:Homes in 97% of U.S. cities are overvalued, Moody's says by majormajor on Thursday May 05, 2022 @11:24PM (#31280960)
The set of homebuyers and the set of stimulus recipients in a lot of these markets are non-overlapping, too.

Crypto, on the other hand, is something I know was sold for a downpayment by several of my acquaintances, which is acting as its own form of "money supply increase" since they spent orders of magnitude less to acquire it. The anti-inflation tool creates its own inflation by turning into "new money." :)

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