I agree. I'd like to add that imo another way stock losses could lead to cooling housing market is if a stock market correction leads to a business recession and job losses mount, people forced to sell and move, and so forth. But that's just a different ave for inventory supply to increase as above poster mentions would need to happen.alfaspider wrote: ↑Mon Jan 24, 2022 11:44 amI can see a stop to the meteoric rise, but I somewhat doubt we will see significant price declines. We never saw the totally speculative buying of the 00s housing crisis - people weren't using interest-only zero down NINJA loans to buy multiple properties worth 5x their income. Subprime borrowing is not anywhere close to what it was back then. The people who are buying houses in today's market can actually afford them for the most part. We'd really need to see an increase in supply for structural cooling to happen, but high lumber prices and land use issues make the supply part of the equation no quick fix.IslandTime wrote: ↑Mon Jan 24, 2022 11:40 amI think housing could come off a little in price. Maybe. Especially in higher priced markets. But the issue with housing is there is so little inventory. Until the inventory moves up, it's hard to get prices to move much.peskypesky wrote: ↑Mon Jan 24, 2022 10:52 amI would say yes.Kookaburra wrote: ↑Mon Jan 24, 2022 10:34 am My question for y’all is: if the stock market continues to drop, will the housing market likely cool off too?
In the housing bust in 2008, inventory had started moving up in late 2005. And was WAY up by late 2006, still long before prices started really falling in Jan 2008. And right now in Jan 2022 housing inventories are the lowest on record. Inventory has only kept falling. So inventory would have to start moving up a lot, and even then there could be a delay.
The issue with low inventory though is for those who have to sell, where do they go? Back to areas with any low vacancy rentals? Parents/family?