Reaction & Commentary
We’re now witnessing eerily similar circumstances to the 2008 disaster that’s what we’re going to expose in this video but before moving on WE kindly ask you to support our work with a thumbs up and don’t forget to subscribe near zero interest rates and a massive flood of stimulus led to a historical
Surge in home buying in the past couple of years which resulted in a 47 increase in prices since 2020 but all metrics now reveal that the landscape has drastically changed and that the viciously hot housing market is about to face a deep freeze as the shot shows from December 2021 to December 2022
Housing affordability is plunged by almost a third that explains why single-family home sales fell for the 11th straight month in December to less than 3.9 million homes Zillow estimates that 27 to 35 million potential buyers are sitting out of the market waiting until interest rates come down or
Expecting some kind of burst in the housing market akin to the 2008 mortgage crisis according to the the chief Economist of the Nar Lawrence Young pending home sales last month recorded the second lowest monthly reading in 20 years as interest rates climbed drastically cutting into the number of
Contract signings to buy a home disappointing results also let the National Association of home builders to declare a recession in the National real estate market in fact nahb Chief Economist Robert Dietz recently suggested that the housing market would reach a bottom in the first quarter of 2023 James Knightley the chief International
Economist at ING anchored this sentiment and stated that the U.S housing decision is already here Rising mortgage rates and a lack of affordability of prompting a steep drop-off in demand for housing he wrote In and Out to clients even Warren Buffett’s favorite metrics suggests that a major reversal is
Underway The Berkshire Hathaway X CEO once explained that one of the key metrics he watches for a downturn in the housing market is a reduction of housing starts with more and more Americans being turned off by high mortgage rates and Builders being forced to cut back construction on new homes declined by
Almost 6.5 percent from October levels and 4.1 percent from November levels and this trend will likely continue through 2023 compared to the same time last year housing starts actually dropped by nine percent but still the booming construction scene in 2021 and in the first two quarters of 2022 is about to
Inundate the market with new Supply and that’s the perfect recipe for crashing prices said David I cranzler from investing.com notably the 30-year fixed mortgage rate is hovering around the same level as during the height of the Lost housing bubble hitting 6.57 last month in a new report krantzler highlights that 15
Years ago the housing market crashed under similar circumstances in the first quarter of 2007 National home prices were at an all-time high data released by the Saint Louis fed reveals that back then the median price for a home was 257 400 Central Bankers were also raising interest rates and after a series of
Rate hikes the FED funds rate reached 5.25 his highest point in six years at the time most of us didn’t imagine that a multi-year recession was about to start the Great Recession officially began in the fourth quarter of 2007 lasting for about 18 months consequently home prices experienced a contraction of
Unprecedented proportions fast forward to today and the latest data from the Saint Louis fet shows U.S housing prices at an all-time high the median price of a U.S home is 454 900 a new record Central Bankers are raising rates again last month the FED funds rate hit 4.5
Percent its highest level since 2007. many of the top Business Leaders in America including Amazon’s former CEO Jeff Bezos and Mark Zuckerberg of matter platforms as sounding the alarm over a severe recession this year and they’ve already begun laying off thousands of workers another breathtaking contraction
In housing prices is just a matter of time crunchler stresses consider that today when a buyer purchases a home for 455 000 making a down payment of 20 or 91 000 they create a mortgage of three hundred sixty four thousand dollars at the beginning of 2021 when the 30-year
Fixed-rate mortgage featured an interest rate of 3.25 percent this would have generated payments of 1584 dollars per month but now with a 30-year fixed-rate mortgage coming with an interest rate of about 6.5 percent the current payment on a 364 thousand dollar loan would be about two thousand three hundred dollars that’s an increase
Of over 44 compared to two years ago so the same buyer who is having to pay 44 more on their mortgage it’s also now scrambling to buy things with the soaring costs of everyday necessity the tendency is for demand to continue to shrink and that will be essentially true
When more jobs are lost as the recession intensifies although the lending abuse is that occurred in the run-up to the last bubble haven’t been repeated the economic real quality of millions of Americans remains undeniably Stark the expert notes we don’t have mortgage-backed Securities anymore but the housing market is rapidly freezing right now
Fewer buyers are willing to commit to new purchases due to the higher monthly payments while fewer sellers are willing to list their homes in a weakening Market particularly considering that declining prices could mean taking a loss at the same time and no one seems to be talking about this
Foreclosure activity on a year-on-year basis has shot up by 57 with foreclosure starts increasing by whopping 98 according to a new report by a real estate data firm atom the Pew Research Center described the worrying interest in foreclosures as visible symbol of today’s housing crisis put it together affordability is plunging mortgage costs
Are going through the roof and a flood of newly built homes is about to enter the market vastly increasing Supply it goes without saying that this is a very dangerous combination not only for the housing market but for stocks too the FED clearly stated in the last meeting that it isn’t done hiking
Interest rates meaning that mortgages will continue to be expensive for the foreseeable future which will then suppress purchasing refinancing and other housing related activities the risks of a real estate collapse continued amount and a series of stocks will also suffer just as we saw during the last crash that’s because consumers
Have so much of their wealth tied to their homes kransler explains the bottom line is that the housing market is in serious trouble so it’s imperative to protect your portfolio from another Layman movement the fact that many real estate companies are already in deep financial trouble further proves that
The housing market meltdown is already upon us one of the first canaries in the coal mine was Zillow the expert reveals the real estate giant faced in over 500 million dollar loss laid off a quarter of its employees and exited its home flipping business as conditions abruptly shifted since the FED began its
Tightening efforts in the past quarter in faster home purchase is also plummeted by 30 percent in fact another major sign that investors are fleeing from Real Estate investments in droves the largest real estate fund operator in the country Blackstone restricted investor redemptions from its Flagship private REITs Reit real estate
Investment trust funds for wealthy individuals and money managers of Pensions insurance companies hedge funds and more shortly after blackstone’s decision Starwood the second non-traded rate also limited withdrawals from its private Reit this is an indicator of the degree to which Real Estate both commercial and residential has become illiquid simply put these residential
Funds have ran out of cash and investors are stuck with homes that are going to be difficult to sell quickly enough to meet Redemption requests home builders are also being impacted by this tighter environment cancellation rates have accelerated during the fourth quarter compared to the third quarter
Jumping to over 20 percent from 13 in the previous quarter with cancellation rates Rising quickly and large pools of capital dedicated to buying and owning rental portfolios out of cash prices will have to fall by what will eventually be a shocking percentage to balance out supply and demand
Cransler warns the housing market crash is just starting to build momentum if we observe the sizable decline in existing home sales in November minus 7.7 from October on a seasonally adjusted basis and the 35.4 percent plunge year over year we can clearly see that conditions are deteriorating alarmingly fast that
Actually marked the biggest yearly decline since autumn 2008. in all likelihood the next directional move in real estate will be a big step function move lower the conclusion for me is that the housing market is in free fall grantsler emphasizes and he is definitely not alone last month the CEO
Of a luxury Furniture retailer RH formerly known as Restoration Hardware Gary Friedman revealed that the slowdown in the housing market is reflecting on his company’s bottom line as furniture sales Flatline all over the nation from the housing point of view there is no soft Landing it’s looking more like a
Crash landing in the housing market it’s looking like 2008 or 2009 the Housing Industry is falling apart the housing market is collapsing and it’s going down pretty viciously as interest rates went up Friedman said during an earnings call I haven’t seen this kind of drop since 2008. the CEO also suggested that the
Housing market was entering a protracted Decline and declared that anybody who doesn’t think we’re in a recession is crazy even the CEOs are some of the biggest banks in America are worried about what will happen next for instance J.P Morgan Chase CEO Jamie dimon said that Americans should braise for an
Economic hurricane and Goldman Sachs CEO David Solomon said during an interview there’s a good chance the United States hasn’t seen the worst of inflation just yet in an interview with CNN Bank of America CEO Brian Moynahan said he’s concerned there could be more tough times ahead for the housing market the
Intended outcome of the fed’s policies doesn’t feel good when you’re trying to buy a home Moynihan highlighted from Peter trough home prices are set to experience a 20 to 30 percent correction in the first stage of this multi-phased crash pandemic era hot spots like Phoenix and Boise which saw the highest
Price spikes could see much steeper declines of up to 70 on top of the 10 drop that already took place since September given the pace at which things are taking a turn for the worse another catastrophe may happen before we expect it the recession will force companies to
Cut hundreds of thousands of jobs in the months ahead and Tighter credit conditions will make it even harder for businesses and individuals to meet their loan payments approximately 250 000 Americans are already underwater on their mortgages and it’s safe to say that when prices start snowballing downwards this number will reach the
Millions just as it happened before officials say that conditions are different this time around and that may be partially true but unfortunately the result is going to be the same we hope you’ve enjoyed this video to keep tuned with the next ones don’t forget to turn on the Bell to get our
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