You ask why home prices haven’t crashed?
How do you define crash?
A stock market crash is usually described as a double-digit percentage drop in a stock index over the course of a few days.
I think that many resale prices have dropped at least 10% from the initial listing but they were way overpriced to begin with. Is that a crash?
I have seen homes that were bought last year going on the market this year with a 50% increase in price. A lot of them are not moving. I think the 2021 bubble is over.
We bought last year. I probably could have sold for 25% profit earlier this year. Some neighbors sold for about 33% profit. I think I could still sell at a profit of maybe 10-15% but after commissions and moving costs, it would be a wash.
So is that a crash?
Unless the economy really tanks - think 1929 crash, I think my home will hold its value. Wish I could say the same about my 401(k).
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