>>60892930
By what metric are they not getting cheaper though?
Nominal prices on something like a house isn't telling the full story since you're not just paying for a house in cash, you take out a mortgage with interest paymensts. You also have to look at things like wage growth and whether they're beating the price of mortgages in growth over time. Obviously if wages aren't growing that just adds to my point that the core issue is wage suppression and obviously there's different countries with different causes for slow or negative wage growth and immigration is just one example. Hungary for example has to deal with for example the rest of the EU being way more competitive in a variety of fields, resulting in the same effect as outsourcing even if they never had an industry that was outsourced. If say Germany has an EV sector but can't make EVs as cheaply as China, the German EV industries dies and there's some degree of pressure on wages. If Hungary could never even have attempted to start their own EV sector because they can't even compete with Germany, their just never have an EV industry in the first place which keep wages low even if they're not falling.
Simply raising interest rates to force home prices down just results in people not only being priced out of home ownership, it forces rents up as well since most rental properties are mortgaged. If the goal is to force them on the market again, well, you've basically just done it by forcing the land lord into selling because he can't find tenants and he's close on being underwater on his mortgage or he's just actually defaulting. None of that is good.
