And a large part of the price increases people are struggling with are food and housing. It’s not like you can wait till next year to eat or have a place to live.
It’s not like you can wait till next year to eat or have a place to live.
Eat? No waiting. Live? Sure! If prices were consistently falling because of deflation, and you knew renting for a year would allow you to buy a larger house with the exact same amount of money you hand in your hand, most would do that and rent for a bit.
Which would put inflationary pressure on rental prices which in turn would put inflationary pressure on property prices, and we are back to square one.
For buying a house, isn’t it kinda like the stock market (except way less liquid). Yeah, the prices may go down in a year but someone may swoop in and buy while you’re sitting on the sidelines trying to time the bottom.
And a large part of the price increases people are struggling with are food and housing. It’s not like you can wait till next year to eat or have a place to live.
Eat? No waiting. Live? Sure! If prices were consistently falling because of deflation, and you knew renting for a year would allow you to buy a larger house with the exact same amount of money you hand in your hand, most would do that and rent for a bit.
Which would put inflationary pressure on rental prices which in turn would put inflationary pressure on property prices, and we are back to square one.
For buying a house, isn’t it kinda like the stock market (except way less liquid). Yeah, the prices may go down in a year but someone may swoop in and buy while you’re sitting on the sidelines trying to time the bottom.
A specific house may be bought up, but others will be available that are similar for substantially less in a deflationary market.