Spark Global Limited Reports:
We find ourselves in the middle of a hot period in the U.S. housing market. As inflation continues to destroy the value of every dollar, potential home buyers are under intense pressure to invest in tangible assets. For many people, home is the wisest place to save.
However, household goods are scarce in the coveted market. The price (climbing. The competition for houses is brutal.
That’s where we are right now. The question on the minds of homeowners and potential buyers is: Where will the market go from here?
No one can be sure. Yet lessons from American history provide a blueprint for buying a home at this unique juncture in history.
Lesson of the Great Recession: You can’t separate the economy from the housing market.
The U.S. economy and the U.S. housing market are falling like dominoes. In some cases, the economy is the first domino, and in others (see: subprime mortgages and the Great Recession) the housing market is the first domino.
Perhaps no time in U.S. history has better demonstrated the inextricable link between the nation’s economic performance and Americans’ ability to buy and own homes. As the stock market crashed in 1929, bank runs followed, followed by mass unemployment. As many as 273,000 Americans lost their homes in 1932, and many more suffered through foreclosure the following year. When severe stagflation hit, Americans simply didn’t have the wherewithal to pay their mortgages.
Some things have not changed since the Great Depression began. Americans today must wake up to the recession. A shrinking economy means job losses, unpaid wages and delinquent mortgages. In the end, that could mean foreclosure.
article links：America's real estate past tells us about its future
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