Where is the crash? That is the question many of you are asking after watching my videos for close to a year now. This summer throughout many cities in the US, housing affordability has reached all-time lows. Bidding wars are still a reality, and record-high prices are seen in dozens of markets. If you recall, last year in June we actually began seeing relief in the markets following two years of steady growth. This change caused many to begin speculating about the realities in the coming 12 months. Many including myself predicted that this (show Case-Shiller) was the start of a long housing bear market, one that would finally bring prices down to reasonable levels.
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Phase 4 of the recession begins here, and this time it’s hitting the housing market. The tremors that have been felt in the global economy since the outbreak of the COVID-19 pandemic are being acutely felt in the real estate sector now. With unemployment skyrocketing and businesses shutting down, the impact on the housing market is colossal.
The housing crash is a detrimental aspect of economic downturns. It erodes the wealth of homeowners, while simultaneously leaving the prospect of homeownership even further out of reach for many aspiring buyers. This vicious cycle can lead to a downward spiral, affecting multiple aspects of the economy.
One of the primary reasons behind the current housing crash is the skyrocketing unemployment rate. Millions of workers across various sectors have lost their jobs, and without a stable income, people are struggling to make mortgage payments. With mortgage forbearance being offered as a temporary relief option, it is delaying the inevitable for many. Once the forbearance period ends, homeowners who are unable to resume normal payments may face foreclosure.
Another factor pushing the housing market towards a crash is the shrinking pool of potential buyers. With widespread job losses, reduced consumer confidence, and uncertainty about the future, people are hesitant to make big financial decisions. The demand for homes has dropped significantly, causing home prices to plunge as sellers scramble to attract scarce buyers.
Additionally, the pandemic has created logistical challenges in the housing market. Social distancing measures have restricted open houses and viewings, making it difficult for sellers and buyers to interact. This has hindered the normal functioning of the market, leading to further uncertainty.
The housing crash will likely have a domino effect on other sectors of the economy. The construction industry, for instance, heavily relies on a robust housing market to continue building new homes. With the demand for new constructions plummeting, layoffs and bankruptcies within the construction sector are inevitable. This, in turn, will affect the employment rate and consumer spending, prolonging the recovery process.
The government’s response to the housing crash is crucial in mitigating its impact. Policies to support homeowners, such as extending mortgage forbearance programs, offering rental assistance, and implementing foreclosure moratoriums, can provide temporary relief. However, these measures alone will not be sufficient to recover from the crisis.
To tackle the housing crash, governments must adopt comprehensive stimulus packages that address unemployment, stabilize income levels, and reinvigorate consumer confidence. This, combined with initiatives to boost the construction industry and incentivize home buying, can be instrumental in jump-starting the recovery process.
As we enter phase 4 of the recession with the housing crash, it is important to recognize the severity of the situation. The repercussions extend beyond the housing market, impacting employment, construction, and overall economic stability. Governments and policymakers need to act swiftly, implementing decisive measures to soften the blow on homeowners and support the housing market. Only then can we hope to emerge from this crisis with a stronger, more resilient foundation.
We're in a very classic bull trap
God, just shut up. You have no idea what you're talking about.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time.
You forgot Florida which is the worst state
I'm a real estate investor and appraiser . You missed one crucial aspect of the decline reported for the fourth quarter. Due to the significant increase in interest rates many of the houses being sold or should I say a disproportionate number of houses being sold we're in fair condition as opposed to average. Or another way to look at it properties at the lower part of the neighborhood value. Since there were no typical houses being sold the average price per sale went down significantly in my market.
Great video! it is challenging to make precise predictions for the housing market as it is still uncertain how swiftly or to what extent the Federal Reserve can decrease inflation and borrowing expenses without causing a significant drop in demand from buyers for everything from houses to automobiles."
I don't know if this is ever going down, the big wigs seem to have cornered the market.
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
I tracked my home price since June 22 and he’s spot on.
I have no stats and I’m not in a relationship with someone from another country however dating in North America isnt easy. Getting married and having kids before 30 is is the norm and expected in many cultures and countries; some still practise and support arranged marriage. Many people in North America aren’t marrying, or waiting later in life to marry. Standards these days are extremely high and unreasonable. I’m not saying dont have criteria but there seems to be more focus on superficiality and unrealistic wants than reality in my opinion: also our stats on separation, divorce and cheating are much higher than more traditional countries. This is why people are doing shows like these because they are frustrated and want options.
if a price doubles, then goes down a little, everybody says it is a crash… when burritos go back down to 4 bucks (they won't), then prices are going down – inflation is wiping out value of the dollar
Oddly, here in nyc the prices of rent and housing prices are going up.
We re just getting done with year 1. The denial doesnt start to fade until the end of year 2.
It’s confirmed you are full of shit. Even in Midwest stuff won’t go down
A home in my subdivision in Nampa, ID increased from mid $700k to $1.2 million last month. Wtf
Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60, therefore I need suggestions on what investments to make.
"The theory of communism may be summed up in one sentence. Abolish of private property" Karl Max
Exactly my question. Where is the housing Crashed? San Diego house price is still the highest
This is the guy that will constantly scream RECESSION!!!
Then when it EVENTUALLY happens, he'll be all, SEE I WAS RIGHT!!!!.
Saying something non stop that is inevitable to happen doesn't mean anything.