This is shaping up to be the most dramatic housing crash we have ever seen. Mortgage rates haven’t been this high in over 23 years. Meanwhile, in October, sales dropped to the lowest level since the Great Recession. Now, the number of home listings is rapidly rising, and sellers are having to slash their prices to be able to strike a deal. Continued below the video
The market already hit a turning point, and new data suggests that it’s all downhill from here. Real estate agents, homebuilders, and mortgage lenders are getting increasingly pessimistic about the future of the market. Americans are extremely worried about losing equity in their homes or losing their homes altogether. When home sales rapidly fall after growing consistently year-over-year, it could serve as a warning sign of a housing market crash. That’s because declines in sales volumes can affect home appreciation, and when enough sellers are unable to find a buyer for their homes, they will have to lower the price to attract more buyers. In the third quarter, home sales plunged by 15.1%, meaning that the number of existing homes sold fell to levels not seen since the fallout of the Great Recession. Continued below the Goldco Ad
With mortgage rates nearing 8%, the majority of would-be buyers are currently priced out of the market. That is leaving sellers no choice but to significantly reduce their asking prices right now. According to data provided by Zillow and Redfin, a record number of sellers dropped the prices on their listings in the past quarter. In September, the percentage of home listings that had a price cut jumped to 9.2%, and in October, that figure went up by an additional 7%, an “unusually high” month-over-month increase, analysts said. Moreover, the National Association of Homebuilders reported that 32% of homebuilders slashed prices in the past month, with an average drop of 6% nationwide. Meanwhile, housing inventory continues to grow.
The supply of unsold homes in the market is starting to pile up. There are now more than half a million homes unsold active on the market. The latest numbers shared by the National Association of Realtors show that the U.S. housing inventory is almost 6% higher than it was a year ago. If the number of properties on the market is increasing, but the demand is keeping pace, that’s a significant indicator that there are more sellers than buyers, and the market is about to face a major shift. Housing bubbles don’t happen out of thin air, and the same is true for housing crashes. There are always early signs that indicate things are starting to get out of hand in the market, and we need to recognize the red flags before the downfall begins so we can safeguard our finances. We hope this video was informative to you and that you prepare accordingly because many factors are expected to impact the economy in the months ahead. Continued below The Covid Ad
he key to weathering the storm is staying informed about local and national housing trends, and ensuring your financial situation is stable enough to survive the turbulence. Several stats reveal that another disaster is imminent. So it might be helpful to homeowners and prospective homebuyers to identify the warning signs so that they can be prepared. For that reason, today we share the latest and most shocking facts about the housing downturn that is already unfolding.
Comments – Threads – Links
- Housing Market Crash On Horizon? – Fast clip at Twitter
- BOOM TO BUST October’s 45% Housing Market Crash Due to 8% Mortgage Rates – Michael Zuber (vid at Twitter)
- Peter Schiff (50 seconds) “Before the government got involved, college was cheap. Government drove up the cost of college by guaranteeing student loans.” “The minute colleges knew that people could get these loans, they started jacking up tuition so they could benefit from all of this government money.” “That is how the government got the votes of students. They promised the students something for nothing. Vote for me, I will make it easier for you to get a loan for college.” – Fast clip at Twitter
- The US housing market is at its most unaffordable level in 39 years. Monthly mortgage payments now consume nearly half of the median household income. Do you think the housing market is headed for a crash? – Citizen Watch Report
- 35 years as a real estate broker. Unpopular opinion: Home prices will not crash because of inflation or high interest rates. We have a shortage of housing. Dips will be bought. Pay attention to what happened in the 1970’s and 1980’s. Great time for investors. – Kerry S
- All of your governments are going to intentionally crash their housing markets, just not yet. How else will they get you all into smart cities? – Shepherd of Truth
- “The average monthly new-mortgage payment is now 52% higher than the average apartment rent, according to an analysis by commercial real-estate investor CBRE. That’s worse than the lead-up to the 2008 housing market crash, when the premium peaked at 33%.” – Carolyn Bolton
- I dont know who cares to see this, but the housing market is about to crash and ARMs are going to start resetting in a big bunch in a few weeks. – Richard Cheek
- We haven’t seen bad numbers like this since 2008 housing crash. That crash was bad policy pursuing the American dream. I could argue these numbers are in some way a result of bad policies by congress compounded by Presidential EO’s to crush the American dream. – Peat Moss
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