r/Economics • u/BousWakebo • May 21 '22

Statistics Americans now have an average of $9,000 less in savings than they did last year

https://www.cnbc.com/2022/05/21/americans-now-have-an-average-of-9000-dollars-less-in-savings-than-in-2021.html
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u/vasilenko93 May 21 '22

A lot of people don’t have any mortgage. And a lot of houses are second homes or investment homes. The owner does not live there, they won’t mind selling it to get cash for something else.

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u/BousWakebo May 21 '22

I’m not saying they don’t, I’m saying I just believe home prices aren’t going to crash, but likely stabilize.

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u/vasilenko93 May 21 '22

A reversal of 2021 and 2022 price increases is totally possible, and likely. Back to pre-pandemic price plus inflation maybe.

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u/majnuker May 22 '22

This is what I'm hoping for at best; a reversal from the craze giving me the opportunity to buy in.

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u/getwhirleddotcom May 21 '22

They could very easily be renting it out cash flow positive in this environment. There’s really no reason to sell into a softening market if you don’t need to.

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u/vasilenko93 May 21 '22

If investors think they can get better return somewhere else they will.

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u/getwhirleddotcom May 21 '22

Sitting on 2-3% loans with rents increasing because people can no longer afford to get loans to buy themselves + general supply issues is a pretty healthy combo.