[quote=deadzone][quote=Coronita]Dz, if the economy is so bad that housing falls back to pre pandemic prices, I’m fairly confident you will unemployed and unable to qualify a loan to buy a house. And, if in the unlikely chance you have cash to buy a home outright, I am pretty certain you would be overcome by fear and buying a discounted house would be the last of your priorieties,versus others who are no longer fully dependent on a regular paycheck. That I’m pretty confident of.
That, and I’d be more concerned s out inflation in daily things such as food and rent which would be slowly eroding one’s wage income which clearly never keeps up with inflation.[/quote]
So you really believe that housing prices correcting back to where they were just 2 years ago, would be so catastrophic that everyone would lose their jobs? I don’t know anyone who lost their job during the “Great Recession”, did you?
Your attitude makes it clear that you believe, even more than I, that our entire economy is reliant on housing wealth effect.[/quote]
Bookmarked. No, that’s not what I said. I believe the only way that housing would correct back to pre pandemic levels is of the entire economy collapses such that the majority of the population are unemployed and can no longer afford to make their regular mortgage payments and need to prioritize spending spending money on basic necessities….housing collapse would only be a side effect of a larger catastrophic problem….and such a catastrophic economic demise would certainly drastically affect you who still are primarily dependent on wage income on top of increase cost of living and rising cost basic necessities that we have right now from inflation that is slowly eroding what you and everyone else is taking home to save for a house or invest otherwise…and since housing is still a good portion of your expenses and in your case it’s also a variable rate , a sudden catastrophic job loss would still leave you significantly exposed to your larger cost of living expenses that now has to be funded completely from your savings….that’s why I say be careful what you wish for
