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BetterMeThanYou t1_izy7xmn wrote

Reply to comment by ProfBU in I’m Cornelius Hurley, academic, lawyer, 14-year director of a Federal Home Loan Bank. Ask me anything about the FHLBs. by ProfBU

In other words -- the increase in housing prices is driven by speculation and housing as an investment vehicle rather than by immediate demand by people who actually want to live in houses.

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Sheol t1_izzgutl wrote

The whole American economy is based on speculative housing and the government backstop to keep it always trending up. It's what all of the 2007 recession was about.

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SupraMario t1_j009hpe wrote

Yea, but don't tell this to /r/realestate or anyone who got in on the over bidding....they only think their house value will increase forever. It's like everyone has memory loss and doesn't think 2008 ever happened.

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[deleted] t1_j022wmt wrote

[removed]

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SupraMario t1_j023g9m wrote

Realestate keeps up with basically inflation. Calling 2008 a blip? What? It had houses that sold for 270k in 07 listed for 90k in 2010. That's not a blip, thats a correction.

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