Update on the housing market
Day 3,995, 06:17
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Published in USA 
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by
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by Alias12
Hello everyone!
It has been a while since I wrote an economical article about the game. Today I would like to provide an update on my article about the housing market that I wrote more than one month ago. Here is a recap of the recommendations I provide in that article:
Previous Recommendations
* Move your residence in small towns. You get more overtime points and as a results more cc. (still valid)
* Buy and stock Q1 houses. If my economic analysis of the housing market tends to be true, salaries are going to increase further and so do house prices. If you can afford it, buy and stock Q1 houses. They will not be so cheap in the coming weeks.
I am glad to say that the ones who followed my investing recommendation would be very happy today. Q1 house prices have increased by more than 1'500 cc, while Q2 house prices increased even more, by 3'000 cc. However, the reasons for this increase were not so much economical but mostly geopolitical. Even though the salaries and house raw materials have increased by 50 cc since then, the conquest of Spain by Croatia, and the destruction of its bonuses shocked the supply of houses. A lot of people saw themselves homeless the next day since there were not enough houses for everyone and they were forced to pay higher prices to be able to put a shelter over their head. Spain house GDP was more than 6 mln cc before invasion, while currently is not bigger than 0.2 mln cc.
However, players have started to adapt to this new situation. House production has been transferred elsewhere and the country who has benefited the most is Romania. After conquering several house-producing USA regions and achieving 100% house bonus, Romania's house GDP has increased 6 times from a month before. Previous day numbers show that Romania's GDP reached 21 mln cc, two-thirds of which are coming from house production.
Graph 1. Nominal Total World GDP from day 3'943 to day 3'994
Regarding investing decisions, I expect house prices to fall in the coming weeks. Nominal Global House GDP is now 75% higher than before Spain was conquered. Since roughly 50% of this increase comes from house price inflation, then the remaining 25% should come as a result of more houses being build per day. The increase in supply and the constant number of players who use houses will pressure the prices downwards. Q1 and Q2 house prices should adjust faster since those are the most profitable and the cheapest investments to be made currently.
Current Recommendation
* Wait before you buy new houses. If you currently have houses in your inventory, use those first, before buying new houses to stock them. Most likely prices will decrease considerably in the coming days, so you can save by buying cheaper houses later.
Thank you for your time. If you have any question or feedback let me know here in the comments or PM me.
I wish you all a good rest of the weekend.
Cheers,
Alias
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Comments
When you make predictions on market did you take into consideration upcoming in-game events (day 4000, anniversary etc.)?
I heard that last year, houses provided the double amount of bonuses, but I didn't include that fact in my analysis. From day 3'991 up to day 3'994, global house GDP increased by 10 mln. The prices didn't change that much during these days, so most likely the production has gone up.
Currently, both hrm and house production are profitable, with the Q1 and Q2 houses earning producers 4% or more return per day. As long as this rate of return for houses continues, everyone will be producing as many houses as possible and I don't think the events will make any impact on house prices.
can you make a review article about current wep Q7 market?
o7
o7
thank you for the information! 🙂 i will hold on buying
o7
House and house raw industry are worker-needed.
House price is determined by the ratio of each level of houses.
If Q1 houses are plenty, the house plus house raw industries will provide free workers to whole industry, as workers provided, salary will be lower, then house price goes down.
If Q1 is not enough to produce sufficient workers for Q2-Q5, workers will be consumed by house industry, salary will rise, house price will goes up.
I followed the rule that "house price is always correlated with salary in the long turn". So house price is determined by worker market.
I don't understand what do you mean when you say that the house plus house raw industries will provide free workers to whole industry.
I agree that house prices are correlated with salaries. If salaries increase, house raw materials price increase, which leads to an increase in house prices.
Yes because each q1 house consumes 4.5 workers including raw and house(under 200% productivity), and it provides 7-8.4 workers(7-8.4 days in different cities) during its life. If there is only q1 industry, one q1 house will provide 2.5-3.9 net workers.
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o7
I wonder if me opening a hraw company will effect this
it depends on how many companies will you open. For 1 or 2 companies, I don't think the markets will notice at all. I produce only 2 Q1 houses per day and I don't think I influence the market at all. But hraw and Q1 house prices have been going down in the last days.