Quote:
Originally Posted by Crawford
Saying California is a "housing market nightmare" is like saying Apple is a "valuation nightmare". Homeowners are sitting pretty.
Most people are existing homeowners, obviously, and benefit from strong property values. You wish you bought in Palo Alto or Flint?
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The need of existing NIMBY homeowners for massive profits is trumped by the need of younger people for affordable housing. Like a monopolist trying to keep prices high by blocking competition. Pure self-centered anti-social "rent seeking" behavior. Besides, at some point demand will collapse and home prices will fall sharply as fewer buyers come in. Prices have reached bubble levels in the coastal markets. The only thing keeping prices levitating is low interest rates and fairly strong job markets. If rates rise & the economy slows, timber!