The U.S. housing market is absolutely imploding, but nobody should be surprised. In fact, we were warned way ahead of time that this would happen. When the Federal Reserve told us that they would be aggressively raising interest rates, we all knew what this would do to the housing bubble. It was obvious that home prices would fall, home sales would plummet and home builders would get absolutely crushed. Sadly, that is precisely what we are witnessing. But instead of reversing course after witnessing all the damage that they have caused, Fed officials are insisting that even more rate hikes are necessary. So as bad as things are right now, the truth is that they are going to get even worse in the months ahead.
In recent days we have gotten some new data points, and they are sobering.
We haven’t seen numbers like this since 2008, and we all remember what happened back then.
Yes, just about everyone expected that the housing market would slow down, but hardly anyone thought that things would get this bad so soon.
The following are 5 signs that the housing crash is escalating a lot faster than many of the experts had anticipated…
#1 According to Redfin, the number of homes sold in the United States during September dropped by 25 percent…
Home sales declined the most on record in September as mortgage rates surged and pushed prospective buyers out of the once-hot housing market, according to a new report.
A report from the real estate company Redfin shows the number of homes sold fell by 25 percent and new listings dropped by 22 percent last month, marking the biggest declines on record in both categories — excluding numbers at the onset of the coronavirus pandemic in April and May 2020.
#2 The number of new housing starts in the United States fell by 8.1 percent in September…
Home building pulled back in September, as buyers faced spiking mortgage rates that have made homes increasingly unaffordable.
September housing starts, a measure of new home construction, dropped 8.1% from August, and were down 7.7% from a year ago, according to the US Census Bureau. After a big drop earlier this spring, housing starts had been holding relatively steady up until July when rising mortgage rates spurred more prospective buyers to sit on the sidelines.