When homes get so expensive that nobody can afford a home, guess what?New household formation plummets and home prices crash.
Ya gotta wonder if Lawrence Yun ever actually took an economics class. I have my doubts...
The number of people who are moving in with friends or family, or sharing apartments or houses to save money, has caught economists at the Realtors association off-guard. The growth in "new households" — first-time buyers or first-time renters — has plunged 70% from last year's rate.
"This is very unusual," says Lawrence Yun, the NAR's senior economist. "Even during a recession, household formations do not slow to this current level."
You mean there is a piece of evidence pointing toward housing being expensive? How unusual.
ReplyDeleteHe's not trying to speak to educated people. I've spent the last few days in Tampa. The degree of speculation was obviously unprecedented (yet Miami is worse), and only the lowest strata of the food chain participated. Larry knows that the uneducated is his market and is only trying to reignite that lottery mentality.
ReplyDeleteNone, I mean none, of the realtors I know went to college. Neither did the folks I know that were most captivated by the bubble.