If the stock market drops 50% so that VTI drops a lot, then house prices are going to drop, too. A lot of stuff will happen if the stock market drops 50%, so that a potential house buyer will probably want to delay buying a house or buy a less expensive house.
And don't forget that VTI in taxable could go up 25% in one year or more, so that the house buyer actually buys earlier than they expected. Or in my personal situation, stock market went up so much that we could make a 100% down payment though we chose to just make a 20% down payment.
Also the rate or amount of saving / making new contributions to the down payment fund goes into the equation. If one is adding only 5% of the amount needed each year, then one is not serious about home buying. But if one is adding 33% of the amount needed per year, then if the stock market drops 33%, one can just delay buying a home by a year or two.
And don't forget that VTI in taxable could go up 25% in one year or more, so that the house buyer actually buys earlier than they expected. Or in my personal situation, stock market went up so much that we could make a 100% down payment though we chose to just make a 20% down payment.
Also the rate or amount of saving / making new contributions to the down payment fund goes into the equation. If one is adding only 5% of the amount needed each year, then one is not serious about home buying. But if one is adding 33% of the amount needed per year, then if the stock market drops 33%, one can just delay buying a home by a year or two.
Statistics: Posted by livesoft — Mon Jan 15, 2024 6:23 am — Replies 9 — Views 912