Re:Tech bubbles are bursting all over the place
by chaircher on Friday May 13, 2022 @04:10PM
(#31372051)
Definitely looks that way in the UK - I've been watching my local housing market like a hawk because I'm looking to buy soon. Houses are staying listed a lot longer, a fair few getting reduced, and newer listings are coming in at more reasonable prices (as much as over £100k is reasonable for a 1 bed flat miles into poverty stricken suburbia).
I think people are feeling more risk adverse cost of living etc and want to hold onto money and stay put where they are.
On one hand the high inflation pushes out lots of buyers -- they can't or don't want to pay the high interest rates. This lowers demand and prices.
On the other hand global supply chain issues (which got much worse with the war) lead to material shortages and rising material costs. This pushes up housing prices.
The net result is likely stagnation -- few houses are built and few exchange owners. But prices stay high.
Except if there will be a large recession causing people to loose their jobs and unable to pay their mortgages. This will crash the housing market, but looks unlikely now.