Concerns about the recent real estate market seem like an inevitable fate. Many people keep repeating that “housing prices will soon plummet,” but is that really true? Here, we need to maintain a cool perspective and objectively analyze the current situation.
The Fallacy of Collapse Theory
Some argue that real estate prices will inevitably collapse. This logic is similar to thinking that life itself is meaningless. If everything is ultimately going to collapse, we would have no reason to strive. However, reality is not like that.
Practical Economic Analysis
Economic analysts and market experts consider various factors when analyzing the real estate market. Current data suggests that the likelihood of a steep decline in housing prices is lower than that of a gradual adjustment or stabilization. For instance, considering recent years’ economic growth rates, unemployment rates, and the balance of housing supply and demand, a large-scale collapse seems unlikely.
Complexity of the Real Estate Market
The real estate market has a complex structure beyond just the rise and fall of housing prices. Various factors influence the market, and it cannot be explained by the single word “collapse.”
Comparison with Stocks
People skeptical about real estate investment often think of stocks as a 100% scam. Of course, there are speculative elements in the stock market, but not all stock investors fail. Many investors actually gain stable returns from stocks.
Conclusion: Utilize Both Real Estate and Stocks
Ultimately, our goal is to win the battle against inflation. To achieve this, it is wise to hold both real estate and financial assets. If real estate acts as a shield, stocks play the role of a spear. It is a smart strategy to defend against inflation with one residential property and aim for excess returns through stocks.
Finally, do not let the fear of a housing price collapse dominate your decisions. Analyze the situation realistically, and balance various assets to prepare for a stable future. Seeking economic stability is a common desire, and accurate information and wise judgment are the first steps towards it.