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The WORST Housing Crash In 40 Years JUST BEGAN

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The entire housing market is about to collapse. That might sound like a bold claim, but it’s backed by irrefutable evidence. Almost every housing indicator is showing terrifying signals. We’re talking about record-low mortgage applications, skyrocketing evictions, low consumer confidence, bankruptcies, and a home-building bubble. The housing market was built on pillars of sand and all of those pillars are all about to crumble. Within the next 12 months, the world is going to wake up to the complete disintegration of the housing market. At the end of this video, I’ll cover exactly which cities will experience the most pain from the impending housing crisis.

According to the National Association of Home Builders, the US is already in a housing recession. Because of the massive appreciation of home prices in the past decade, home building has taken off in a bubble-like fashion. New privately-owned houses under construction are at an all-time high. That’s right, an all-time high. Over 1.6 million housing units are under construction, which is 12.5% higher than that of the 2008 housing bubble. Hundreds of thousands of houses are going to go on sale in the next few months, and there are not going to be any buyers. Housing sales are currently plummeting month after month. New single-family sales have dropped to a 5-year low of only 500 million units per year. So not only do we have a record-high supply but also shrinking demand. According to consumer confidence surveys, US citizens no longer believe in elevated housing prices. The Wells Fargo US Housing Market Index tracks the price confidence of single-family home buyers. The Wells Fargo index has dropped for 8 consecutive months to just 49 out of 100. That’s a frightening trend that puts housing confidence on track to levels similar to the 2008 recession. Throughout this video, I’m going to be ranking every indicator from 1 to 10 on the top right of the screen. Make sure to stick around to the end of the video to see my final assessment. The Wells Fargo index is not the only indicator showing an alarming trend. Surveys nationwide are all pointing toward the fact that consumer confidence is extremely low. The horrifying consumer sentiment is best exemplified by Fannie Mae’s national housing market survey. According to the survey, 79% of US citizens think it’s a bad time to buy houses. On the flip side, only 17% of citizens believe it’s is a good time to buy houses. The difference between the two percentages is the worst that Fannie Mae has ever seen since the survey’s creation in 2012. The reason why this all matters is because consumer confidence is a self-fulfilling prophecy. When everyone thinks that the housing market is going to crash, prices will inevitably crash. Mortgage applications are now plummeting to record lows. According to the Mortgage Bankers Association, mortgage demand has fallen to the lowest level in 22 years. One of the key reasons for low consumer confidence is rising interest rates. Because mortgage rates are rising to record heights, mortgage applications are dropping like flies. Federal Reserve Chair Jerome Powell recently remained adamant about raising interest rates at all costs. People thought that Powell would pivot and suddenly start printing money again, but Powell’s recent speech at Jackson Hole shows otherwise.

Powell will continue raising interest rates regardless of how much the US economy crashes. This will knock over the housing market’s pillars for one reason: capitalization rates. During the past decade, institutions flooded toward the housing market to create investment products. The National Association of Realtors found that institutional buyers represented 13% of residential sales in 2021, up from just 11.8% in 2020. Firms like Blackstone have expanded into the real estate market, with billions of dollars of new housing units being acquired. The primary reason why institutions flocked toward housing is because of capitalization rates, or cap rates in short form. Cap rates are calculated by taking the rental income that a property receives and dividing it by the property’s market value. If a house is worth $1 million and the rental income is $40,000 per year, the cap rate would be 4%. Powell is adamant about raising rates to 4% by 2023, which puts immense pressure on the rental market. According to the CBRE Group, the average multi-family property cap rate was roughly 4.6% in the fourth quarter of 2021. This means that the average multi-family property earns 4.59% annually from rental income. As interest rates increase in the future, real estate investors will see their profit margins shrink significantly.

Written by Casgains Academy

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  1. I have learned in recent months is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses. The market is very unstable and you can not tell if it's going bearish or bullish. While myself and others are trading without fear of making a loss others are being patient for the price to skyrocket, I would say trading has been going smoothly for me, I started with 2.5 BTC and i have accumulated over 15 BTC in just Five weeks, with the trading strategy given to me by expert trader LIBERTON CORP

  2. It makes sense<, BTC and crypto is off helping to regulate, rather that pretend it won't ever happen. The big institutions getting in is the catalyst that will launch us into the stratosphere. Most people don't like change but after the change is made they grow used to it and it becomes a non issue usually because their fears never materialize. And benefits they were unaware with before turn out to be far more beneficial. Few if any rug pulls. The projects that initiated the process of regulation have not been ruined, they got involved in setting guidelines and helping the regulators understand the crypto space. I’d get involved more knowing that I have made over 16` btc from day-trade with LIBERTON CORP , Crypto in few weeks

  3. Bitcoin recent price action shows evidence that a bottom may be forming, <denying bears any further movement lower. Ethereum price has developed a ridiculously extended hidden bullish divergence condition on its weekly chart, warning of an imminent bullish reversal. XRP price hammered with two major short setups, but sellers failed to push XRP lower. At this point Diamond hands are showing cracks as people start to panic; if you are losing in the current dip or you look forward to start the best way to go is trading with the guidance of an expert. LIBERTON CORP has been one step ahead of other analysis, with her strategy I was able to accumulate 15 BTC in 3weeks.

  4. Thanks < , for the update I always appreciate the insight . < I'm really blown away by the fact that having watched your videos for so long , I had the same opinion that you are putting forth in this video . < In as much I would like to add to what you have said here the market is in a tug of war with the bull at one side and the bears at the other end . If this is really a bear market rally then Bitcoin is not done going down , just like stocks are not done going down . And if this isn't a bear market rally and the Fed achieves a soft landing , Bitcoin will probably rally substantially from where it is now , but we just have to wait and see . My hope is that by the fourth quarter , the economy will be slowing enough that the Fed says we are going to pause , and then you will see the next crypto cycle start . I have witnessed the last 3 cycles and just before each bull run the amount of bear posts and negativity around crypto is just like it is now . Bitcoin is entering the area of where a bottom will be formed IMO . Please note this could take months and there will likely be further volatility in both directions . Despite the volatility that has ruled the market this year , being a retail trader in the crypto market and implementing strategies / signals from LIBERTONCORP a professional broker / tradr that has been my mentor , I have accumulated 12 ' btc ! in profits although the rates are capricious wiping out some of my profits , people who are open to learning from history , will survive It's not that difficult

  5. Thanks<, for all you do! I like your truthful coverage. I think we should be educating the newbies on what to do aside holding rather than discussing about the dip. The good thing about the space is that you can buy the dips and put them into active trades. making profits from trades while confidently waiting for a pump in price because it is inevitable. I've always played safe implementing trades with insights and signals from a renowned trader, LIBERTON CORP I made 8.5 BTC from the recent crash in the market within a period of five weeks

  6. <Good to hear your logical analysis. It's been pumping and dumping in this range for ages! It's technically just going sideways, sideways means generally stagnant. Trading went smooth for me. More emphasis should be put into day trading. Thanks to LIBERTON CORP for his amazing skills for helping me earn 9 Btc from 2.9 Btc through day trading. Great TA as always..

  7. Although< I have interests in global economics I don't watch the news anymore… I have enough FUD in the crypto markets lol. Thanks for sharing this news and offering your insight on how to navigate crypto during unfortunate times/events like this. You're right about keeping level headed when investing/trading so that's why I think it's important to limit the amount of FUD we consume. I don't watch the media but the news that you present gives me just enough to know what's going on without riding the emotional rollercoaster if I were to watch the news everyday. Now I buy and just trade long term more than ever, I have made over 23BTC from day trading with LIBERTON CORP Signal in few weeks, this is one of the best medium to backup your assets incase it goes bearish..

  8. Thanks<, for all you do! I like your truthful coverage. Mad respect for educating everyone. BTC's price has been fluctuating lately, but I think we should be educating the newbies on what to do aside holding rather than discussing about the dip. The good thing about the space is that you can buy the dips and put them into active trades making profits from trades while confidently waiting for a pump in price because it is inevitable. Most people do not understand how the space works. Your advantage is understanding, Charts won’t guarantee what an asset is going to do. Prices will go up or down. Nevertheless, the market has been so profitable despite price ups and down. I've always played safe implementing trades with insights and signals from a renowned trader, LIBERTON CORP . I made 9.3 BTC from the recent crash in the market within a period of six weeks..

  9. This is not a bad thing for most people now reaching middle age, we were never aloud to participate in the housing market because forces kept the price of housing higher then market rate for our entire lives. A starter home used to cost about 50k usd adjusted for inflation, that's AFTER adjusting for inflation.

  10. I am trying to avoid making any new buys at this point in other not to get sucked into a bear market trap. It's tough making money in stocks when institutional investors are the driving force behind the selling.. although I read an article about people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

  11. These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any ideas on how to earn better on the short run?

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