It Started: Home Prices Are Falling 50%



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THE HOUSING MARKET:

First, HOME SALES.
Year-Over-Year, home sales are down nearly 20%…marking the seventh straight month of declines….and, in terms of WHY, their chief economist noted that “The softness in home sales reflects this year’s escalating mortgage rates” – which, as of a few days ago – have begun to approach 7%.

Second, MONTHS SUPPLY OF INVENTORY.
If you’re in the market for a BRAND NEW CONSTRUCTION…supply has ballooned from 3.5 months at the start of the pandemic…to now, 8.1 months of supply…suggesting that, if you’re a buyer – you’ll have a LOT more leverage than you did in the past.

Third, HOME PRICES.
Even though homes are MORE EXPENSIVE today than they were a YEAR AGO…most of that growth was attained within the first few months of 2022…and, for the last 90 days…home prices have been falling. Nationwide, median prices are currently sitting at “$389,000…DOWN from the peak of $413,000 that was recorded in June.”

Even the Chief Economist for Realtor.com said that, “For homeowners planning to list, today’s market is significantly different than the one from even 3 weeks ago”….meaning, we won’t know the true effects of today – until November.

When it comes to this, The Vice President Of BlackNight Research said that “It would take some combination of a 40% rise in incomes, roughly a 3-percentage-point decline in 30-year rates – or a 30% pullback in home prices” to normalize the housing market.

Now, SOME markets could be hit worse than others – including speculative cities which saw the biggest pandemic price INCREASE, and – the high end luxury market which has already fallen 5% in the last 3 months…but, other markets may continue to increase in price….so, we’ll have to take a wait-and-see approach.

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  1. My husband and I were going to sell her home this time last year. Now I regret that I hesitated, because my neighbor is currently trying to sell their home. I have seen the gut-wrenching look on their faces, especially after they lower the price. There's been literally no foot traffic there, and I'm actually kind of worried for my neighbor.

  2. In Florida a 2500 sq’ home cost to build due to inflation is at $300k-350k on average, if builders can not cut a profit either they cut on production or go out of business. If they slow down construction segment related jobs layoff start to happen, how this affect your industry directly or indirectly? Think about it.

  3. Is anybody gonna tell this man off?? Home prices IS NOT and HAVE NOT fallen 50%, does he think we're stupid? Does he not think we check the markets as well????????

  4. Whatever is happening, Asians should invest .Honestly I appreciate you and your content < Technical Analysis is good but I find It truly baffling that major crypto youtubers just look mostly at pure T.A and completely ignore the bigger narrative of why BTC is pumps/pumped and why the future outlook will be even rosier than it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. We were already on shaky footing with historically low volume and almost pure whale pumps,narrowly avoiding a long-term bear market. More emphasis should be put into day tradiing as it is less affected by the unpredictable nature of the market. I have made over $350,000 from day tradng with Bradley James Holly insights and charts. He been one step ahead of other analysis..

  5. Great stream, as always. I appreciate the level-headed approach you take to the news and the markets. . A lot has changed and that's on everything but the truth is I don't even care much about bullish or bearish market anymore because Bradley James Holly got me cover as I am comfortably making $150,000 monthly.

  6. Hi Graham! I have a question: Which is better to buy as your first home, a house or condo? I'm not sure if you already made a video about this but I'm wondering if buying a condo has more disadvantages than buying a house especially when it comes to fees and etc. Thank you and I love your videos. I learned a lot from them and applied what I learned. I now have Roth IRA and high yield savings account.

  7. oh no real estate peeps are losing money. The worst part is that only the banks are making the profit. House prices are going down but with such high interest rates people can't afford them. It was a bubble time to admit. The real people that are gonna get hurt are potential homebuyers, the middle and working class.

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