Quote:
Originally Posted by chassis
@Joekerr Sounds like the market is warm/hot in your area. What would be a couple of reasons for softening in the housing market?
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I think my government is doling out too much in the way of Covid payments and it is putting a bandaid on a bad situation that is ultimately just going to be infected and need surgical treatment basically. Looks ok right now, but won't be.
Eventually, the payments will have to stop, which means people start to go back to work...but...and here's the hitch....those employers couldn't get them back while CERB was running because there wasn't enough incentive, which means a certain percentage (and I fear it is going to be a significant percentage - like 20-35%) of those employers can no longer operate and decided to shut down. Which means there is no job to go back to. And then these employees start to have trouble making payments, cut back spending, which has ripple effects on everyone else and we stress test the economy. Which I think is shaky right now. What effect will that have - I don't know.
But I suspect one area where we might see a contraction is house prices.