Real estate bubbles hurt first-home buyers who buy near the top of the market, of course, but real estate bubbles also hurt last-home sellers who have to sell near the bottom of the market.
A thought- some academics view home prices as the NPV of pre-paid rent. So it shouldn’t matter if prices rise or fall.
However for older homeowners/ those who might downsize or sell in the near future/ the NPV of future rents analysis might not be applicable. They might consider hedging/ selling a component of equity?!?
A thought- some academics view home prices as the NPV of pre-paid rent. So it shouldn’t matter if prices rise or fall.
However for older homeowners/ those who might downsize or sell in the near future/ the NPV of future rents analysis might not be applicable. They might consider hedging/ selling a component of equity?!?
Another flawless article