[quote=The-Shoveler]It’s not about housing or stocks, it’s about local municipalities Tax base and retirement pension funds that are reliant on stocks and housing.
If either go bust anytime in the next few years,
local municipalities will be dropping like flies.[/quote]
That boogeyman has one driver. Interest rates. But that really only affects the for sale market.
As interest rates go up, like we’ve seen over the last several months, counter-intuitively, housing prices will actually rise. For the same reason that they rose in the last year. Lack of inventory.
The bubble-bust had the effect of largely pricing people in. As in, stuck in their house. So sans banks finally actually starting to foreclose again, there will be no collapse of housing prices.
While the masses could find someone to buy their house and move up to a more affordable better house, the vast majority won’t because they won’t be able to stomach ‘giving it away’.
