That just shows how little housing there is out there.
Real estate pricing is far stickier than, say, stock prices. But that's also why it's super important to build before prices rise, because prices are probably not going to fall, they will at best stay sub inflationary.
Additionally, in the US many many people are locked in to their current mortgage. They have a super low interest rate on a 30 year mortgage, but interest rates are many points higher now, so if they switch to a new mortgage the can no longer afford as much house as they price they could sell their current house for.
That lock in and lack of places to live and move to also creates a higher demand when there are a few places that are built. "Thousands" doesn't mean much to me without comparing to the total number of existing houses, but there should be a minimum of 1% and maybe 2-3% of existing houses being built all throughout the nation. Yet most areas are not building that much if at all.
my point is who is going to provide that supply sufficient to drive prices down. Builders - wouldn't. Government? I don't see it, at least not in US. In USSR we had government provided housing, and still there was shortage and a lot of other drawbacks to such an approach.
Real estate pricing is far stickier than, say, stock prices. But that's also why it's super important to build before prices rise, because prices are probably not going to fall, they will at best stay sub inflationary.
Additionally, in the US many many people are locked in to their current mortgage. They have a super low interest rate on a 30 year mortgage, but interest rates are many points higher now, so if they switch to a new mortgage the can no longer afford as much house as they price they could sell their current house for.
That lock in and lack of places to live and move to also creates a higher demand when there are a few places that are built. "Thousands" doesn't mean much to me without comparing to the total number of existing houses, but there should be a minimum of 1% and maybe 2-3% of existing houses being built all throughout the nation. Yet most areas are not building that much if at all.