𝗖𝗼𝗹𝗹𝗮𝗽𝘀𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗠𝗮𝗿𝗸𝗲𝘁

When it comes to the current global economy, you can consider me a pessimist.

#COVID has forced central banks around the world to print stimulus to support a dying economy.

But what about the housing market?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">[THREAD]

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">Well... Where do I begin...

If you didn& #39;t already know, we are in a recession.

A time when people earn less, spend less and generally don& #39;t have such a good time.

But let me tell you... The worst is yet to come!

What do you think will happen when stimulus packages dry up?

I will tell you.

People will have less income.

Businesses will be supported less by their governments.

Businesses will go into administration / liquidation.

Unemployment will rise.

But how will this effect the housing market?https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend">

People that need money, or can& #39;t afford their mortgage will free up trapped equity by either remortgaging or selling.

This means more people selling / an increase in supply of the housing market.

People may desperately need this money so there could be some sense of urgency.

But who will buy?

Those well positioned to do so, but let me tell you, it will not be many

This will be reflected in a decrease in property demand.

The first thing you learn about in economics is Supply & Demand and the situation described above indicates a reduction in price

This will create a downward spiral.

Sellers trying to undercut their competition,

Dropping the price of their beloved home in a chance to get their hands on some cold hard cash.

We& #39;re in for a wild ride people, position yourself accordingly, it& #39;s about to get messy!