Let's get back down to Housing Fundamentals. Housing Purists will readily tell us that the Housing Market is not going to correct or crash because the Housing Fundamentals do not support that theory. Well, I guess it depends on who you talk to about Housing Fundamentals. In this video we review the current Housing Fundamentals and prove that a Housing Correction or Crash has already been baked in by the actions of the FED and others.
It was only a matter of time until the Rental issues would rear their ugly heads. The high cost of goods and services, like gas and food products, among many other items, is now effecting every person one way or another. Households that have a limited of fixed income will spend their funds on food, utilities and transportation before they pay for Housing costs. This, once again, puts many landlords in predicaments of trying to figure out what to do as most are still trying to recover from their losses due to the previous Moratorium on Evictions. Once again the small "Ma & Pa" landlords face financial hardship.
It is not one thing that leads to a Housing Crash, it is multiple items that simultaneously contribute to the overall stress in the Housing Market and turn the tides towards a Housing Correction or Housing Crash. The list i reviewed is extensive. There will be those who are quick to say that "This time will be different". Their arguments can easily be disputed with legitimate facts and actual phenomenon taking place in the US Housing Market.
So everyday we are listening to more "doom and gloom" regarding the US Housing Market, some of it justified. The Federal Reserve, specifically Jerome Powell, has stated that the Housing Market needs a "Reset" in order to level the playing field for all potential Buyers. They are trying to curtail rampant inflation and Home Price Appreciation simultaneously. Let's see if they can pull this off. Lower Price Points on the Way!
Equity Slides, Delinquencies Increase
This is an interesting article that sums up where we are in the Housing Bubble 2.0 timeline.
There are many factors that contribute to the overall health of the Housing Market. Reading the signs can give us some indication as to what lies ahead.
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