Ask HN: What’s Up with the Housing Market?

#1

Post by dan_sss » Tue, Mar 30, 2021, 12:04 AM UTC

Can someone please explain what are the true underlying causes for this recent explosion in the housing market?

Re: Ask HN: What’s Up with the Housing Market?

#2

Post by smt88 » Tue, Mar 30, 2021, 12:10 AM UTC

1. Insanely low interest rates

2. Low inventory due to recent urbanization trends (seems to be an issue worldwide)

3. A lot of disposable income among people who kept their jobs and stopped going out or traveling during the pandemic

4. Ongoing risk-taking by lenders, encouraged by their ability to sell loans to the federal government

Re: Ask HN: What’s Up with the Housing Market?

#3

Post by yuppie_scum » Tue, Mar 30, 2021, 12:37 AM UTC

smt88 wrote: post #2

1. Insanely low interest rates 2. Low inventory due to recent urbanization trends (seems to be an issue worldwide) 3. A lot of disposable income among people who kept their jobs and stopped going out or traveling during the pandemic 4. Ongoing risk-taking by lenders, encouraged by their ability to sell loans to the federal government

This is an excellent post but I’d also add stir craziness/reassessment of housing needs due to WFH

Re: Ask HN: What’s Up with the Housing Market?

#4

Post by ratsmack » Tue, Mar 30, 2021, 1:06 AM UTC

smt88 wrote: post #2

1. Insanely low interest rates 2. Low inventory due to recent urbanization trends (seems to be an issue worldwide) 3. A lot of disposable income among people who kept their jobs and stopped going out or traveling during the pandemic 4. Ongoing risk-taking by lenders, encouraged by their ability to sell loans to the federal government

>Ongoing risk-taking by lenders, encouraged by their ability to sell loans to the federal government

This insanity has to stop, but as long as we put up with the incestuous relationship between Wall Street and Government in general, I don't see it abating.

Re: Ask HN: What’s Up with the Housing Market?

#5

Post by [deleted] » Tue, Mar 30, 2021, 1:16 AM UTC

smt88 wrote: post #2

1. Insanely low interest rates 2. Low inventory due to recent urbanization trends (seems to be an issue worldwide) 3. A lot of disposable income among people who kept their jobs and stopped going out or traveling during the pandemic 4. Ongoing risk-taking by lenders, encouraged by their ability to sell loans to the federal government

[deleted]