If builders ask for a larger and larger deposits, say from the current 0% it goes to say 5%, the available pool of buyer will shrink to 10% of what it is now. Make it 10% on a 500K house and you’re looking at 1% or less of the available current looky lou’s. BTW a 10% drop will cut me out of the market, and I am a steadily employed software engineer who cleared close to 80K last year and dont have a 1000 expensive worthless toys I wasted my $$ on. essentially I dont have debt at all except my house which cost 150K brand new in 03 and its financed at 5% fixed on a 15 year fully amortising mortgage which I always paid atleast 10% more each month.
Tighten credit standards, same result. Even a small amount will rapidly shrink the pool of eligible buyers.
Cool.
Cow_tipping.
