DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - US house prices in free-fall

**paypaltoegold1** · 03-25-2008, 06:31 PM

Originally posted by Patroklos
Why not, prices continue to fall even though nobody is planning on building anything 2-3 years from now?

Eventually demand will increase and the excess inventory will be used up. That might bring housing prices back to equilibrium, but I doubt another bubble. I don't see your reasoning for their not being a future bubble. The thing that prevents bubbles is stable prices not volitity. Speculators love volitity, regular home buyers hate it.

And financing is only scarse for people who shouldn't be buying anyway (like it should have been for the past 5-10 years). Banks are all about people who are legitimatly financially solvent. They need low risk borrowers now more than ever. Low risk borrowers are in short supply.

03-25-2008, 06:31 PM	#19
paypaltoegold1 Join Date Oct 2005 Posts 519 Senior Member	Originally posted by Patroklos Why not, prices continue to fall even though nobody is planning on building anything 2-3 years from now? Eventually demand will increase and the excess inventory will be used up. That might bring housing prices back to equilibrium, but I doubt another bubble. I don't see your reasoning for their not being a future bubble. The thing that prevents bubbles is stable prices not volitity. Speculators love volitity, regular home buyers hate it. And financing is only scarse for people who shouldn't be buying anyway (like it should have been for the past 5-10 years). Banks are all about people who are legitimatly financially solvent. They need low risk borrowers now more than ever. Low risk borrowers are in short supply.
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