The nicer neighborhoods will hold up better in the beginning because people have means. However, they’ll eventually be worn out holding out for prices to go up. People need to move for may reason and attrition will eventually cause prices to drop. It only takes 4 or 5 distressed sales to affect prices in a whole neighborhood.
If we have a recession, then many professional jobs will go. The young families living to the max will be hammered and might have to move back in with parents.
In the 1990s we had a crash in the military industrial complex. This time, we’ll experience a crash in the Real Estate industrial complex. Many finance and RE related jobs will be lost.
I remember that in the 1990s the high end homes dropped proportionate more than the mid-market homes. However they remained more expensive and out of reach to most buyers.
———–
I don’t think that we are pessimists on this forum. We are realists. Piggington will be around for a long time. There’ll always be something interesting about RE to discuss. However, the “landed poor” motto may need to go.
