/biz/ - Business & Finance

>>11861064
>WOOOOOOOW A WHOLE 8%
>GEE JOLLY MISTER thats like a total market crash
>NOT!!!

Property bubbles move slower than stocks, Xing Pe. See if you can figure out why. See if you can figure out why -10% yoy after years of +10% yoy is significant!

>>11802590

>>11467014
It can't just stop at 10-15% because buyers literally do not have the amount of money necessary to buy for 10-15% less than the peak.

They havnt got $1m in savings
The bank wont lend them $1m

They can only pay what they can afford, which is now 40% less than at the peak. So at an average you're looking at 40% losses until the median buyer can buy the median house again.

But because of the trajectory of falls it'll exceed 40% as the public shit themselves once they see -7% become -10% become -15% become -20% become -25% become -30% become -35% become -40%.

That's all before the economy grinds to a halt as the negative wealth effect kicks in and unemployment increases and absolutely nobody is buying anymore. The people who used to be able to get a mortgage, who now can only get 60%, now cant get 0% because theyre unemployed.