(Epic Economist)—There was a time when the American dream included home ownership, but that dream has now become a nightmare for many. That’s because millions of Americans are going to see their home equity being wiped out by the imminent housing collapse.
A report from credit analytics firm TransUnion found that the average U.S. household is struggling to keep up with near 8% mortgage rates, and many are already losing their properties as they get underwater on their mortgage loans.
On top of that, with buyers priced out and more sellers slashing their prices to sell properties before the end of 2023, many major cities are already seeing double-digit quarterly declines, such as San Francisco, where home prices came down by as much as 15% in the third quarter, as well as Seattle, and Austin, which reported a respective drop of 12% and 11% drop during the same period.
The red flags of a housing crash are becoming more apparent. If you’re new to our channel, thank you for joining us. Today, we will break down the latest data on the real estate market meltdown. And if you’re a regular here, thank you for your support. We have a lot to cover today, so we hope you’re prepared to hear this.
Over the past couple of weeks, major signs of distress emerged in the U.S. housing market, leading experts to worry about where we’re headed. Fortune said that the market is starting to “crack,” while Wells Fargo economists predicted a real estate recession due to rising mortgage rates.
To put it simply, between the high cost of the home and the elevated interest payments, many Americans simply can’t afford to purchase a new home anymore. As a result, sellers are slashing their listing prices right now. Redfin’s most recent housing market update indicates that approximately 1 in 15 U.S. homes on the market decreased in price in the past quarter. Compared to the same period in prior years, this is an alarmingly high rate.
To make things even worse, more than one in 10 homes bought in the past year are worth less than what owners owe on their mortgage. That’s what the new report released by real estate data firm Black Knight shows. About 11% of people who borrowed to buy homes in 2022 now owe more than the properties are worth, a figure that has steadily climbed since the start of 2023.
Moreover, more than one out of every four buyers who purchased a home in the 11 months of 2023 have properties worth less than the loans on them, meaning that they are already underwater on their mortgages and at risk of being foreclosed. That’s a very worrying development. Rising delinquency rates are an indication that conditions will get even more chaotic because once a mortgage payment is more than 90 days overdue, the threat of foreclosure becomes imminent. It is feared hundreds of thousands of Americans could be impacted by foreclosure in December.
The credit crisis can also play a major role as more expensive borrowing costs could further reduce the affordability of homes. When access to credit becomes more restricted, it can impact the number of potential buyers, and slow down property sales. In addition, global economic events, such as ongoing geopolitical conflicts, China’s economic downturn, and global food shortages can spill over into local property markets, affecting investor sentiment and confidence.
Ultimately, the coming housing crash will destroy the wealth many hard-working families took decades to build. And that’s the saddest part of this crisis because we can already see the slow-motion train wreck happening before our eyes. But the Federal Reserve and the federal government are still going to let it happen. It’s only by taking the equity of the bottom 90% of Americans that they will be able to stop the bleeding caused by the trillions of printed dollars that they pumped into the economy since 2020.
Don’t be mistaken. This is a man-made disaster. They want you to lose everything you worked for so that they can bring inflation down again.
It’s becoming increasingly clear that fiat currencies across the globe, including the U.S. Dollar, are under attack. Paper money is losing its value, translating into insane inflation and less value in our life’s savings.
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This must one tentacle of the satanic monsters’ plan to achieve the former sentiment of “you will own nothing, and be happy.”
Don’t think it’s going to happen in the way they’re expecting.