Bubble will not burst while people can afford to borrow for these insane prices and doesn’t look like that’s going to change any time soon. Banks still offer record low interest rates and employment is high.
But a nice little recession coupled with a decent raise of interest rates and things would get spicy real quick.
EDIT: I forgot, there’s also the investment pressure keeping prices high, aince with these low interest rates it’s hard to keep pace with inflaction so people invest in properties.
If it doesn’t burst => priced out of the market due to further increases coupled with rising interest rate
If it bursts => priced out since banks will not lend huge amounts and interest rates can go significantly lower than right now
3 comments
This, just with the skeleton.
Bubble will not burst while people can afford to borrow for these insane prices and doesn’t look like that’s going to change any time soon. Banks still offer record low interest rates and employment is high.
But a nice little recession coupled with a decent raise of interest rates and things would get spicy real quick.
EDIT: I forgot, there’s also the investment pressure keeping prices high, aince with these low interest rates it’s hard to keep pace with inflaction so people invest in properties.
If it doesn’t burst => priced out of the market due to further increases coupled with rising interest rate
If it bursts => priced out since banks will not lend huge amounts and interest rates can go significantly lower than right now