Evidence The Housing Bubble Is Bursting? “Home Sellers Are Slashing Prices at The Highest Rate in at Least Eight Years”
The comments below are an edited and abridged synopsis of an article by Michael Snyder
The housing market indicated that a crisis was coming in 2008, and the same thing could be happening today. For several years, the housing market has been good for the US economy. But now that has changed, and home sellers are cutting prices at a pace not seen since the last recession. This is a major red flag.
More than one out of every four homes for sale in the US has had a price drop within the last month. The supply of homes for sale is shooting up; good for buyers, but bad for sellers.
Just like a decade ago, millions of American families have stretched themselves financially to get into homes that they can’t afford. If a new economic downturn results in large numbers of Americans losing their jobs, there will again be mortgage defaults rising to stunning heights.
The middle class is shrinking, and most families are barely making it from month to month. The cost of living is rising but paychecks are not, resulting in a middle-class squeeze.
The trade war is starting to take a toll on the global economy, and it continues to escalate. There was a similar scenario during the Great Depression, and we would be wise to learn from history.
Even though the stock market has been booming, everything else appears to indicate that the US economy is slowing down.
If home prices continue to fall, it will put even more pressure on the system, and it won’t be too long before we reach a breaking point