A $1.3 Trillion U.S. Housing Market Crash Is Imminent, and Inevitable

According to data from Zillow, the combined value of residential houses in the U.S. increased $1.1 trillion to $33.6 trillion in 2019. If home prices drop 4% through early 2021 as Pointon estimates, the housing market could end up losing $1.34 trillion of its value.

The conditions for such a crash are already in the making. The number of Americans filing for unemployment benefits spiked to a record-shattering 6.6 million for the week ended March 28.

These numbers are bad news for the U.S. housing market. They are a precursor to the lay-offs that the novel coronavirus pandemic could bring. The St. Louis Fed estimates that as many as 47 million Americans could be out of a job. This translates into an alarming unemployment rate of 32.1%.

As a result, the demand for housing is expected to fall. One estimate predicts a 35% annual drop in sales this spring as COVID-19 rattles the market.

Fuck yes. Best time to buy a house. Woohoo

You should have a job at that time and not everyone will have a job after 6 months as unemployment rate could hit 50%.

What companies to short?

My 2 story house is paid off. My 2 cars are paid off. I can survive making 12 bucks an hour. im 36 yrs old. I'm able to do this because of no wife or kids lol

If the housing market crashes, what's to stop the banking industry from following?

Don't banks fund mortgages for the most part?

Banks are going to crash one way or the other when people start deferring their mortgage payments up to 90 days and still can't make the payments after 90 days due to job loss. The banks with good cash reserves like Bank of America and Chase will not have any layoffs till Dec 2020 while other banks may ask for bailout funds as their stock value drops to 90%. It all depends on how long this crisis lasts. The longer this crisis drags, banks will start having problems.

All of them.

Imminent = Never

I am in mortgages. Right now:

1. All non-qm funding has stopped. While we can make the loans the investors know what is coming and will not buy them. this includes bank statement and jumbo loans.

2. FHA, VA, and USDA have raised FICO to 680 in most cases and added other restrictions which make them impossible for the typical borrower.

3. Conventional loans are available but many do not qualify because of credit.


Anyway, house prices will fall very far since the market to keep the prices up is gone. Simple supply and demand 101.

What happens to prices when 80-100k house drop onto the market in 30 days?

this was pretty obvious result of what's been happening.

house prices will go down...

and lots of other things to follow.

welcome to the socialist NWO.

soon it won't even be your property.

everyone liking their taste of deep state communism.

DOMINOES, and I don't mean pizza.

I guess my real concern is bank solvency.
I have a pretty good amount of cash in ALLY Bank.
Being that it is an online only banking facility, means I do not have immediate acces to it should things go bad.

Couldn't agree more. Run down Shacks in California selling for 700,000 and up. It's ridiculous. If the housing market loses 1.3 Trillion it's all pumped up, over inflated shit, no great loss, and maybe the millenials will be able to buy a house in their lifetimes.

I guess you must live in far deep mountains where property tax is below $15k a year for manufactured home

Kudos!

Wait till everyone is dead first...maybe in October.

This is good as housing is a rip off right now. In my area you can't get anything but a shit hole for $100,000. Then you have to stick another $30,000 into it before it's half way decent. I'm glad I have my house paid off and I don't care if prices go down as I plan on living in mine not using it for an investment.

so when do we make a run on the banks

and finish off these criminals forever ?




and who is currently guarding the vaults in NYC ?



so much going on in the world , it must be hard to keep track of all that stolen wealth

Just round up the bankers,bilderbergs,CFR,trilateral commission.Try em and hang em.Crisis over.

We were in a housing bubble in many parts of the country, anyway, with many people stretching thin to afford a house, so it's not going to be pretty when prices drop like stones.

ok so does this mean rent is going down also?

because $1000 for a room with no kitchen in many places in America was out of control

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Yes, agree 100%. Everything was in a bubble, markets, housing, banks, etc....

This was bound to happen eventually, virus or not

I'm in 1 of the top ten counties economically in the US. Booming housing market here before the virus hit.

I do mortgage surveys as part of the closing of home sales. Went from doing 6 to 8 houses a day to 2 a day in the last week.

It's grinding to a halt!

I was thinking the same. I used to be married and in just 1 month she sucked 6k$ out of me. Then I divorced and my net worth went way up.

Lol 4%, let’s talk when it crators 30-40%

It's already not you property.

Just stop paying your rent (property taxes) and see if it's really your.