The CEO of Bank of America, Brian Moynihan, said that the financial giant no longer believes a recession is on the horizon for the American economy, hinting that the Biden administration and Federal Reserve have achieved a ‘soft landing’ after inflation troubles in recent years,” The Hill reports.
I don’t think that really changes a huge amount with the economy.
If there’s 150,000 people who want to live in an area, and only 100,000 homes, then only ~67% of them will be able to buy a house there. The price is the most that any of those poorest 33% of people are willing to pay (or rather the most that the banks are willing to lend them).
If you were in the poorest 15% of people before a recession, then chances are you’ll be in pretty much the same place during and after it.
Sure, there’s a bit of wiggle room where they still ask stupid high prices for a bit before realising that nobody has any money, but as soon as banks are willing to lend 10% more, the house prices will soon follow.