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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?
[THREAD]
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?
[THREAD]
Well... Where do I begin...If you didn't already know, we are in a recession.
A time when people earn less, spend less and generally don'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?
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?
People that need money, or can'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.
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
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're in for a wild ride people, position yourself accordingly, it's about to get messy!
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're in for a wild ride people, position yourself accordingly, it's about to get messy!
