[Nbox9]

This comment is too bleak.

If they refinanced in 2020 then they likely bought in 2019 or earlier. If prices fell to 2019 levels it would be a crash —- and probably merit all sorts of government response including lowering interest rates. No one that entered the market before 2020 is “screwed”.

Housing prices even in the markets hit hardest by 2008 recovered in ten years. You aren’t stuck living in your current home forever.

If you bought an investment property then relax, there’s no indicator that rents are going to decrease anytime soon.

[merrywhether]

If only the younger generations had more political power, there’d be no government intervention in the event of a crash. The older generations that bought houses and then pulled ladders up in order to politically engineer constant wealth growth should be left to deal with it on their own for once. The house of cards is going to completely collapse eventually, so the sooner the better.

[mywittyname]

The GFC hit during my early 20s. And I remember the zeitgeist of people my age during that time.

Many young people put off home ownership specifically because we watched slightly older friends lose their shirts on their houses. I remember specifically one friend who had to save up to sell their house, not only was he selling for 20% less than he bought for, but he was making $20k in out-of-pocket concessions to the buyers. Popular opinion was that houses were too risky.

Plus, there was the issue of, we all either were laid off recently, or had friends who had been laid off. It's kind of hard to think about long term planning with that hanging over you head.

So when the house of cards collapses, young people won't be the beneficiaries. They will suffer long-term because they lack the experience and context to internalize concepts like business cycles. I remember my mom telling me to use the $8000 first buyer credit from the government to buy the house across the street from her for $78,000. That house is how worth a quarter of a million. But I didn't buy it because I was worried about layoffs or further market collapse.

[tomatowurst]

you forget that we've had QE since '08 to kick the can down the road to bail out the banks that screwed everything up.

the can cannot be kicked any more.