Epic Housing Crash Could Rock America to it's Core

 No doubt an ominous headline from a guy who used to manage billions of investment company funds.  He has been warning of an USA meltdown since the 2007-2009 near meltdown.  So while some say he is the "boy who cried wolf" because he is always saying things are going to crash, he has been consistent in his warnings.

Remember that prophet Jeremiah warned Jerusalem for 40 years that unless they changed paths, they would be destroyed.  I'm guessing after about 15 years of warnings that never came to pass, people started ignoring Jeremiah and kept on eating, drinking, partying, planting, building and had no clue that Babylonians were on their way to destroy them.  Pretty sure they mocked the messenger, Jeremiah, as well.

Today we read about his warnings surrounding the real estate bubble and how bubbles always seem to end up popping.

You may not want to buy a house right now.  What goes up must eventually come down, and we have just entered the "down" side of that equation.  Over the past two years, home prices in the United States have gone up nearly 40 percent.  

Now mortgage rates are rising at a pace that is truly frightening, and they are likely to go even higher in the months ahead as the Federal Reserve continues to fight a relentless war against inflation.  

Needless to say, higher mortgage rates mean higher potential mortgage payments for prospective home buyers, and so millions of Americans are being priced out of the marketplace right now.  The only thing that is going to bring those buyers back into the marketplace is for home prices to go down, and that is already starting to happen in some areas of the nation.

We were already in a historic housing bubble heading into 2020, and over the past two years we have witnessed another housing bubble develop on top of the previous housing bubble.

Overall, home prices in the U.S. rose 37 percent between March 2020 and March 2022.

That is insane.

And what we are witnessing in Boise is really alarming.

Boise was once one of the hottest markets in the entire nation, but now sales are dropping faster than Joe Biden's approval rating...

Before governors relaxed stay-at-home orders two years ago, white-collar professionals were already fleeing their exorbitantly priced apartments in cities like San Francisco and Seattle. The biggest beneficiary of that WFH homebuying wave was undoubtedly Boise--where home prices skyrocketed 53%. You could even call it the poster child of the pandemic housing boom.

But that Boise honeymoon is over. While spiking mortgage rates have pushed the overall U.S. housing market into a slowdown, it has delivered a particularly hard blow to the Boise housing market. That has seen both Boise home sales plummet--down 28% on a year-over-year basis--and inventory levels surge--up 161% this year. It's also chipping away at home values. According to Zillow, the median Boise home sales price fell 3.5% in June.

This downturn is going to have enormous implications for home builders as well.

Sales are falling, and a key measure of home builder confidence just declined for the seventh month in a row...

The National Association of Home Builders/Wells Fargo Housing Market Index, which measures the pulse of the single-family housing market, fell for the seventh consecutive month to 55, the lowest level since May 2020. It is the second-biggest, one-month decline in the survey's 37-year history.

The only time that the index has fallen more in a single month was during the very early stages of the COVID pandemic.

National Association of Home Builders CEO Jerry Howard fears that things will continue to get worse in the months ahead, and he is warning that "we're going to go into a recession" unless something dramatic happens...

"For the last seven straight months it has been going down and this is a huge drop - and I think all it says is, 'Somebody do something or we're going to go into a recession,'" Howard said.

I am sorry to tell you this Jerry, but we are already in a recession right now, and it is going to get really bad.

Our leaders have been making decisions that have been mind-numbingly bad for a long time, and now we are all going to suffer the consequences.

If you are searching for an easy way out of this mess, you can stop looking, because there isn't one.

What we are heading for is going to make 2008 and 2009 look like a Sunday picnic, and it will shake our nation to the core.

Here;  Epic Housing Crash Could Rock America To Its Core (prophecynewswatch.com)

Ouch!  Yes, it's true, our leaders have been making really bad decisions and spending money as fast as they can print it.  That practice simply can't go on forever.

Of course 0% interest rates for over 10 years cooked massive bubbles in lots of markets, including real estate and now that 0% party is over!!  Mortgage rates last year might have been 2.6 but now they are crowding 6% and this will force force the huge real estate bubble to deflate.  How far??  No one knows.

We continue to hope that Jesus is coming for His bride before chaos, anarchy and melt downs happen...because if that happens people won't be eating, drinking, planting, building and planning marriages as they were in the days of Noah.