The problem with the doompatrol is that they take some specifics with the US and hope to apply it on our shores. Forget the fact that this is still a new country with an acute housing shortage, large positive migrant intake relative to population, not a recessionary economy, infact enjoying bumper times in many states.
Every economist correctly did not predict any of the last few property booms but have infinite wisdom to ascertain the downturn. How do you determine income levels. Eons ago the husband worked and the wife did not. Now you have two incomes.Is it a percentage of that/ Eons ago, or not so long ago the wife when she started to work earned a pittance not so today.
USA lending practices were irresponsible ours not. Lot of the lenders don't even have recourse , we do. Many here will still not sell even if houses drop 50% , which is absolute rubbish anyway. At the end of the day the house is a dwelling first. Only an investment if you have two houses. If they vacate then where will they go , we have too few houses anyway.
The doom will dissipate, may take time, house values will not plunge, not enough around to do that, mortgage years will extend further, inflation is well and truely with us and wages are climbing rapidly and will catch up. May take 3/4 years and market will readjust rather than collapse. If anyone thinks they will pick up wholesale bargains they need to dream on . Will be some bargains as always but we have to get use to first homebuyers having $300,000 + mortgages.
Place 20 expert economists in a room on any subject and they will not agree. Its not a perfect science by any strech of the imagination. Mental self abuse is all it is. You and I have heard this all before.
