Are We Entering a Housing Market Crash?
All across America House prices have dramatically increased since 2020. But that rapid rise could soon be coming to halt as central banks raise interest rates. Leaving America wondering: is another housing crash on the way? So far about 70% of Americans believe so…
According to a recent article in Yahoo! Finance, 69% of Americans think that a housing market crash is coming and that a majority think that a housing crisis is developing. Nearly 1 in 5 millennials doubt they’ll ever be able to afford a home and 53% of qualified buyers regret not purchasing a home while they had a chance.
Which probably explains why another 56% of homeowners have gotten unsolicited offers to sell their home in the last two years.
What Are the Economists Saying About it Though?
According to Jose Torres, a senior economist for Interactive Brokers. The U.S. is facing a “perfect storm” for a housing crisis similar to that of 2008,
He predicted that within the next few years, housing prices could drop up to 25 percent, and that they will begin to decline in early 2023, which could see double-digit drops in prices.
“Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home,” Konter said in a statement alongside the survey results.
Mortgage rates have climbed steadily to their highest level in years on the expectation of tighter borrowing conditions as the Federal Reserve aggressively hikes its benchmark interest rate to combat inflation.
Here’s Valuetainment’s reaction to the resent housing numbers.