Industry news, page-1732

The difference now is debt is high, and the ability to service that hasn’t caught up yet.

Same story as the “Back in my day we had 18% interest rates!” When property was 2-3x income. Servicing that was north of 40% of ones income on average.

Today, with double income households, and medians where they are now, 7,8,9x incomes. it’s often still taking up 40% + of a household.

The difficulty is similar, the equation has changed.

As play money said, money is expensive. But it’s only expensive relative to people’s ability to service it. Incomes are starting to catch up and households have readjusted where possible,

The moment rates get cut, watch shares and property fly.

Imagine you start lifting weights, Your strength (income) allows you to do 10 reps (price) at a specific weight (interest rate)

Your trainer @Mason14 keeps increasing the weight on you (interest rate) and your strength starts to increase over time (income) to catch up. We have been lifting heavy for a couple of years now and @Mason14 is feeling nice and is about to drop your weights. Naturally, he knows the amount of reps you can do will then go up.