As interest rates rise, the recession worsens, and inflation strikes fear in buyers, the housing markets are showing signs of a possible crash. Houses were also overpriced. People were buying enthusiastically after COVID when there was a shortage of homes for sale.
People should remember that there is a contagion market when housing looks like a bad investment. The fear of buying spreads if housing starts to look like a bad investment.
Back in May, Zandi at Moody’s boldly predicted that the housing market was facing a correction.
Through the summer, Zandi said, U.S. housing activity would plummet. As it did, Zandi said home prices in bubbly markets like Phoenix and Boise would begin falling.
If a recession hits [it did hit], Zandi said, those significantly “overvalued” housing markets would likely see home prices slashed by 15% to 20%.
View this interactive chart on Fortune.com
Among the 413 regional housing markets measured by Moody’s Analytics, the firm deems 96% are “overvalued.” Simply put: Nearly the entire country has higher house prices than underlying fundamentals historically support.
Among the markets analyzed by Moody’s Analytics, 183 are “overvalued” by more than 25%. That’s up from 150 regional housing markets it deemed “overvalued” by more than 25% in the fourth quarter of 2021. The most “overvalued” markets are concentrated in fast-growing cities in the Mountain West and Sunbelt that benefited from the nation’s work-from-home boom. That includes both Boise (“overvalued” by 72%) and Charlotte (“overvalued” by 66%).
Watch him describe what is happening and what will happen:
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Very good list of US and world economic data – Truth Be Told Podcast: “Is 2022 Our Annus Horribilis?” September 10, 2022https://rightwirereport.com/2022/09/10/truth-be-told-podcast-is-2022-our-annus-horribilis-september-10-2022/
Everyone leaving Dem hellholes is moving to the last Free States, Texas and Florida so no housing depressions there.
Gotta agree there. Traffic here in central FL is at winter levels year-round. Thousands of snowbirds never left in 2020 or later, and millions of red-pilled northerners have joined them. That said, a drop can still happen in leftard places like Tampa and Ft. Lauderdale.
Thanks for pointing out 2 of the l*b*r*l sh*th*l*s of Florida. Those undesirables who weren’t red pilled and migrated from the Tri-state area and OH, PA and CHI have metastasized in TPA and FTL and turned those places into Detroit-like crime infested ghettos. FL is a great state otherwise.
I saw signs of this last summer which is why I hurried up and put my condo up for sale. But don’t worry, Blackrock is out there just waiting to scoop up housing at 20 cents on the Dollar.