“Why Do Houseless People End Up Not Buying Homes?”
“The Importance of a Gradual and Steady Rise in Housing Prices”
Introduction
The real estate market is heating up again, and it’s not uncommon to hear people say, “I think housing prices are at their peak right now, so I’ll wait until they drop to buy a house.” But when property prices do decline, do these individuals actually go ahead and purchase homes?
To find an answer, we need to reflect on past market trends and policies. This article dives into the psychology of houseless individuals in Korea’s real estate market and explores why a steady, gradual rise in housing prices is crucial for an ideal property market. We’ll also provide actionable advice for those hesitating to buy, to help them make informed decisions.
1. Why Houseless Individuals Don’t Actually Buy Homes
The main reason people don’t purchase homes isn’t just because “housing prices are too high.” Most often, it’s because they either lack the funds for a significant down payment or are fearful that prices will fall further after they buy.
During Korea’s previous administration (2020–2021), when property prices skyrocketed, we saw many who had previously hesitated to buy homes finally give in. They scrambled to purchase houses, pooling together every resource they had. In some cases, lifelong Seoul residents even ventured into small provincial towns to purchase multiple properties.
This behavior highlights a common pattern: When prices start to surge, people inevitably jump in, fearing they’ll miss out on even more gains. Conversely, when prices rise steadily and gradually, people tend to act earlier, knowing they can plan their finances without panic.
2. Why a Gradual and Steady Rise in Housing Prices Matters
Reducing the Houseless Population
When property prices increase at a moderate and predictable pace, market anxiety is minimized. Potential buyers are more likely to prepare and enter the market without hesitation. This increases housing affordability and accessibility for first-time buyers.
Reducing Social Costs in a ‘Real Estate Republic’
Sudden price surges benefit property owners in terms of asset value, but they also create significant societal costs, such as heightened inequality, social unrest, and political tension. On the other hand, rapid price drops can lead to economic stagnation and financial instability.
A steady upward trajectory in housing prices ensures a balanced, stable market that avoids these extremes.
For the Welfare of Citizens and Future Generations
A balanced real estate market provides young people and lower-income groups with a fair chance to build wealth. Moderate price increases benefit both those who already own homes and those aspiring to purchase, by maintaining affordability while ensuring assets retain their value.
3. The Role of Politics and Timing in Real Estate Purchases
A popular saying goes, “The best time for regular citizens to buy real estate is during conservative governments, while social mobility happens during progressive ones.” Historically, conservative administrations have tended to loosen regulations, creating opportunities for market entry.
However, this isn’t a foolproof rule, as market dynamics are also influenced by interest rates, global economic trends, urban development, and population shifts. Simply waiting for the “perfect political climate” may not always work.
What matters most is personal preparedness—consistent research, financial readiness, and the ability to make decisive moves when opportunities arise.
4. Winter’s Off-Season and the Temptation to Liquidate: “Never Cash Out Your Property!”
Winter is traditionally considered a slow season in real estate. Some investors may feel tempted to sell properties and secure cash. However, there’s an old saying: “You can trade your spouse and children, but never cash out your real estate.”
Of course, this is said humorously, but it reflects a fundamental truth: Real estate has historically maintained or increased in value over the long term. While reckless investment is to be avoided, waiting indefinitely for prices to drop is also not a strategy. Buyers should focus on their own financial readiness and the market’s long-term outlook to make informed decisions.
Conclusion
- The primary reasons people fail to buy homes are not just high prices, but a lack of financial preparation and an overreliance on potential price drops.
- A steady and gradual rise in housing prices creates a healthier market and reduces societal tension.
- The real estate market is influenced by various factors beyond government policies, including interest rates, global trends, and demographic changes.
- Even in slower seasons like winter, potential buyers should focus on preparing their finances and understanding market trends to make the right decisions.
Korea has long been described as a “Real Estate Republic,” with housing deeply embedded in its culture and economy. This makes understanding market dynamics and acting decisively all the more important. Success in real estate comes down to consistent preparation, market insight, and the willingness to act at the right time.