Insights from Dinar Chronicles: Declaring that “the housing market is finished” based on the start of a default cycle oversimplifies a complex situation. A few key points we could consider: – Default cycles can certainly negatively impact the housing sector, but the magnitude of the impact can vary greatly depending on the scale and scope of defaults, as well as other economic conditions. – Housing markets are local, so while national trends matter, specific metro area job and population growth, interest rates, and inventory levels can diverge from national patterns. – Government policy responses play a major role in either…
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