Hopefully it gets housing/real estate as well because I'd really like to buy a house in the next ten years.
Housing prices might take a hit, but by the time they pop up on the open market, you won't be buying from a distressed seller, but rather a numbered corporation domiciled in Delaware that's picked up all those properties in cash, cheap.
Plenty of companies are out there offering quiet cash deals, they will find these properties much faster than agents with their paperwork and fees can swoop.
If you weren’t old enough or in the right neighborhoods to see it in the last bubble, there were shady companies mailing postcards to every house and plastering neighborhoods with poorer / older people with fliers. They appeared to be looking for people with medical bills, old people who needed money for assisted living, etc. who needed money right now and might be swayed by a quick transaction. I noticed how you could cross into a less affluent neighborhood and suddenly it was like every pole had a “ca$h for ugly homes” sign on it.
It is hard to imagine anyone affording a a mortgage if their savings are rotting away at 5% less than inflation.
Im just shocked that some people think stock is some SV alternate reality. I grew up in a rural community before the internet, and even then, nobody I knew was long term saving for houses or retirement with a savings account.
I do agree 5 years is a while, but it's also easy to say that right now based on the last 5 years. It's not terribly difficult to find 5 year periods where returns aren't very good or flat out bad (e.g. starting investing in 2000).
Anecdotal Source: Every single person I know who has bought a house, myself included.
If you wish to counter this source please provide data supporting your claim that all home owners have stock options to liquidate.
You don't know anyone that has sold stock to pay for a down payment?
You're just patronizing everyone who isn't in Silicon Valley with a statement like this.
First, how many Americans only own stock as part of their 401(k) or IRA and can't liquidate it without affecting their retirement?
Second, how many Americans own stock portfolios with sufficient value that they could liquidate them and purchase a house for cash, as the initial response implied? I guarantee you it's less than 60%.
I'm talking about down payments, paid for by stock sale, 401k, or IRA loans.
Maybe I'm crazy and you're right, but I think most people use these vehicles to save for and fund their house purchase, not a regular savings account.
You have to pay back with interest, but the interest goes to you.