[voodooranger]

a housing slump may be coming but then so are pay cuts. in fact they’re already here for many people. prices are also falling for energy and lots of other commodities as aggregate demand collapses.

all of this amounts to textbook deflation. those with debts to service (mortgage, auto, student) are going to be feeling a lot of pain in this environment. good news is gov’t just needs to print money to bring nominal prices up.

bad news is there’s no free lunch for young people hoping to buy homes. imo wages are largely going to move in unison with home prices.