one – Although everyone one Piggington makes home-buying decisions based on the actual price of a home, what percentage of peeps in the real world do you think do that?
My guess is that 50% of people will buy a house if they can find a bank that will give them a loan. They don’t consider price or even whether they can afford the monthly nut from the get go. Another 25% only consider whether they can afford the monthly payment (the actual price of the home means squat to them). Another 10% or so will buy a house if they can afford a fixed monthly payment after putting 10 to 20% down. The remaining 15% actually consider the price of the home itself.
So this notion that there are bunch of people on the sidelines waiting for a certain price is probably crapola. Although, there are certainly some investors out there who can purchase several properties.
two – Supposedly the main factor in the models used by the ratings agencies was employment. If everyone stayed employed, the models predicted blissful homeownership for eternity. Affordability and the like was either a small factor or a non-factor in the models. The models were likely structured to give good ratings, not to give accurate ratings.
three – How can we be in an inflationary environment if gold is going down every day?
