Housing Crash 2.0? Experts Warn That “The U.S. Housing Market Looks Headed For Its Worst Slowdown In Years”
Existing-home sales dropped in June for a third straight month. Purchases of new homes are at their slowest pace in eight months. Inventory, which plunged for years, has begun to grow again as buyers move to the sidelines, sapping the fuel for surging home values. Prices for existing homes climbed 6.4 percent in May, the smallest year-over-year gain since early 2017, and have gained the least over three months since 2012, according to the Federal Housing Finance Agency.
Those are definitely troubling figures, but perhaps even more disturbing is the fact that mortgage applications are way down right now…
Mortgage applications to purchase both new and existing homes have been falling steadily, and mortgage rates are rising again. Single-family home construction also fell and was lower than June 2017.
Of course economic numbers always go up and down, and just because we have had a few bad months does not necessarily mean that disaster is looming.
But when you step back and take a broader perspective on the housing market, it really does start to feel like early 2008 all over again.
In fact, Nobel Prize-winning author Robert Shiller says that this “could be the very beginning of a turning point”…
“This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, in an interview.