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Originally Posted by osirisboy
Wow doom and gloom. Reminds me of the people saying those things during the Great Recession and look what happened. Nothing. I hope there is a cooling off of the market though
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I think the Great Recession is partially responsible for the crisis were in.
It gave people the idea that this is a typical RE bubble - the reality is the problem is much more complicated and access to credit is only a portion of the problem.
I agree that there will be an unwinding in prices to some degree. This is already very obvious in the high end SFH market, big discounts.
The issue is prices have run away so far that it doesn't do much for anyone when a $3 million house sells for $2.1.
Likewise for condos, the construction code is so ridiculous, and construction costs are so high that even just building costs, assuming land is free, make it totally unaffordable to build decent size unit.
We are in a long term nightmare, no doubt.
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