Posted on 02/28/2023 10:37:37 AM PST by millenial4freedom
The US housing market faces a potential 19.5% correction, and more rate hikes from the central bank could make a crash even worse, Dallas Federal Reserve economists warned in a Tuesday research report. The global housing market has become frothy since 2020 as a result of the pandemic boom, according to authors Lauren Black and Enrique Martínez-García, and there's still a risk of a deep housing slide despite signs of easing home-price growth. Drawing parallels between the US and Germany, the economists added that some of the housing market froth can be attributed to the affordability crisis, though house-price-to-rent ratios in particular pose reason for concern. The ratio measures the profitability of housing as an investment opportunity.
(Excerpt) Read more at msn.com ...
I still think they’re mainly trying to get more people to sell.
People looking to downsize or move to a lower COL area are looking at selling their houses for a lot less of a gain or even a loss.
Investment groups are buying every single property up here.
In the last few years the supposed value of my home went from
123K to 225K with no real change in the property. The taxes rose along with that, of course. The taxes will never go down. In addition we get offers of equity loans based on the higher valuation almost daily. I feel for the folks who take up the equity loan offers and soon will find themselves deeply under water on their home loans. It’s all part of the democrat plan.
...or not.
If there is such a lock on disaster, why is the economy still functioning?
And didja ever notice even the doom newsletter salesmen accept payment in fiat currency?
A balanced lifestyle and portfolio of financial assets, real estate, food and ordnance, wins the day.
‘risk an even worse housing correction’
This language is silly. Corrections are good things, not bad things. The bad things are the foolish economic policies that create prices with no connection to actual value, which necessitates corrections.
19.5% correction?
They gotta long way to go before they get back to normal.
.
That is because there is a shortage of housing in most parts of the country. Especially in the northeast and upper midwest.
We need more multifamily(apartments) and retirement housing(semi detached condos).
MI?
Getting lots of ‘want to sell your home’ calls and postal mail for some time.
I thought they were ‘Flippers’ taking advantage of the elder.
The real estate market has been way overheated for generations. It should be corrected by at least 50%.
would mean that a good chunk of houses will now cost less then most vehicles for sale.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.