Timeline for Should I ask the seller of a house for a price reduction given a recession is almost certain?
Current License: CC BY-SA 4.0
19 events
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| Sep 15, 2021 at 8:28 | comment | added | Dmitry Grigoryev | @JBentley I fully agree with your comment, though I didn't see any hint in the question that the markets have already gone down, not until the edit about the property valuation by the bank which came after the the answer was written. | |
| Sep 15, 2021 at 8:26 | comment | added | Dmitry Grigoryev | @WittyID "if people in quarantine can't work to earn money, how do they get the too much money or even leave their homes to chase too few goods." - In some countries people got "economic relief money" which may be backed by real goods or not. The latter case (money not backed by goods) is exactly how inflation appears. | |
| Sep 15, 2021 at 8:20 | history | edited | Dmitry Grigoryev | CC BY-SA 4.0 |
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| Sep 15, 2021 at 8:08 | history | edited | Dmitry Grigoryev | CC BY-SA 4.0 |
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| Sep 15, 2021 at 1:13 | comment | added | le3th4x0rbot | In hindsight it looks like walking away from the deal would have been a bad idea! | |
| May 12, 2020 at 18:50 | comment | added | WittyID | Will leave this article here - cnn.com/2020/05/12/economy/consumer-prices-april/index.html - to back up previous arguments i made against the likelihood of inflation or a recession inflation | |
| Apr 3, 2020 at 23:08 | comment | added | JBentley | This answer is correct in that we can't predict whether the markets will suffer further losses, or whether they will recover and rise. But it misses an essential point: we do know that the markets have gone down between when OP made his offer, and now. OP can avoid that loss, even though he can't predict what his future loss/gain might be. If I offer you an item for £100 and in the meantime its value goes down to £80, you don't know if it will drop even more to £60, or recover to £100. But you do know that if you give me £100 you are overpaying by £20 today. | |
| Apr 3, 2020 at 18:15 | comment | added | WittyID | A careful review of the current "stimulus" bill reveals that what we call "stimulus" is actually more like a distress bridge loan. Most of the money being put into circulation (in people account for example) are simply replacing money that should have been there if they were working. Furthermore, they're replacing rent and daily essentials that are not additive to the pre-COVID state of the economy. Finally, stagflation requires a stagnant economy. With projected 10-30% drop in US Q2 GDP, the economy is anything but stagnant and oil prices today are deflationary rather than inflationary. | |
| Apr 3, 2020 at 18:09 | comment | added | WittyID | @Underminer I appreciate you pointing out the phenomenon. However, although a lot of very smart people are very comfortable throwing the term stagflation about, I disagree. The 70's produced a very unique set of circumstances that are far from what we're experiencing today. Stagflation requires supply destruction which came in the form of OPEC with regards to a very key economic input (oil) that has very broad implications on consumer and production prices. With COVID-19, we have both supply and demand destruction, hence the argument for inflation is pinned solely on govt printing money | |
| Apr 3, 2020 at 14:35 | comment | added | Underminer | Backing up Dmitry: en.wikipedia.org/wiki/Stagflation or recession-inflation can occur when the government creates policies that harm industry (lock-down) while growing the money supply too quickly (stimulus money). Not saying it's going to happen, but it's possible. | |
| Apr 3, 2020 at 2:09 | comment | added | WittyID | @DmitryGrigoryev, if people in quarantine can't work to earn money, how do they get the "too much money" or even leave their homes to "chase too few goods". Maybe you could make an argument for staple foods inflation because that's all people are buying...and maybe toilet-paper (lol), but in the broad based economy, inflation during a recession is very hard to come by. Check out the US and Ireland 2009 inflation - here fred.stlouisfed.org/series/FPCPITOTLZGUSA and here tradingeconomics.com/ireland/inflation-cpi | |
| Apr 3, 2020 at 0:29 | comment | added | Dmitry Grigoryev | @OscarBravo Sorry, but "booming economy" and "too much money chasing too few goods" simply don't rhyme in my head. IMO the whole problem with the quarantine is that lots of people can't work and produce the goods they otherwise would, which leads to exactly "too much money chasing too few goods". | |
| Apr 2, 2020 at 21:50 | comment | added | eps | @WittyID agreed completely. The US is looking at great depression levels of economic calamity. Any stimulus passed will be lucky to limit the damage, the idea that real estate will boom during this is... Not realistic | |
| Apr 2, 2020 at 19:53 | comment | added | WittyID | Tying a recession and governments emitting more money to rising house prices is wrong. Real estates prices fell in every recession dating back to at least the great depression. Saying changing the price is groundless because the future is not known also isn't accurate. The future isn't known, but stock markets around the world are down ~20% YTD. Why? | |
| Apr 2, 2020 at 12:08 | comment | added | Oscar Bravo | @DmitryGrigoryev I would... Inflation is a feature of a booming economy; too much money chasing too few goods. If it goes too high, it can erode market confidence and lead to a recession - which leads to deflation! Capitalism has within it the seeds of its own destruction... | |
| Apr 2, 2020 at 11:13 | comment | added | Daniel | @DmitryGrigoryev The problem with inflation is, it increases the cost of living, diminishing everyone´s disposable income until wages have adjusted. So that means less money for down payment=> less demand, and a higher rate of foreclosures =>more offers. | |
| Apr 2, 2020 at 11:07 | comment | added | Dmitry Grigoryev | @OscarBravo What about the inflation, do you rule it out? | |
| Apr 2, 2020 at 10:39 | comment | added | Oscar Bravo | The pandemic is unlikely to lead to a boom in the economy. Massive unemployment and business closures loom. A falling housing market is extremely likely. | |
| Apr 2, 2020 at 8:12 | history | answered | Dmitry Grigoryev | CC BY-SA 4.0 |