Biggest Housing Bubble Ever??

 We all know that home ownership has now become nearly impossible for the younger generation.  Owning a home used to be part of the American dream.  Get married, buy a house, have some kids, work hard and save some money.  That was the formula.

But today that isn't the case.  Many young women have no desire for marriage or kids.  And many young folks realize they will never have a salary of $300,000 that you would need to qualify for a starter home in Bozeman or Buffalo.

But can these inflated home prices really survive?  Or could we be on the verge of a major correction?

No one really knows...but this guy says we might be there.

The housing bubble that burst during the Great Recession was enormous, but it was nothing compared to what we are facing now.  Two decades ago, the average price of a home in the United States was about $140,000.  Today, the average price of a home in the United States is above $500,000.  We have literally never seen anything even close to a housing bubble of this magnitude.  Unfortunately, what comes up must eventually come down.

Just like we witnessed during the Great Recession, home sales have started to crash.

In January, sales of previously owned homes were 8.4 percent lower than they were in December…

Sales of previously owned homes in January dropped a much wider-than-expected 8.4% from December to a seasonally adjusted, annualized rate of 3.91 million, according to the NAR. Sales were 4.4% lower than January 2025. That is the slowest pace since December 2023 and the biggest monthly drop since February 2022.

This count is based on closings, so contracts that were likely signed in November and December, when the average rate on the 30-year fixed mortgage didn’t move much before dropping slightly in January. That rate is now 6.1%, according to Mortgage News Daily.

Regionally, sales fell across the nation month to month but were down the most in the South and West.

Sales of previously owned homes have been at a depressed level for years, and now things are getting even worse.

It is a really bad time to be a real estate agent in America.  So many really good agents are deeply struggling right now.

One of the primary reasons why home sales are so low is because home prices are way too high.

Over a 20 year period, the average price of a home in the United States increased from about $140,000 to more than $503,000…

While there have been periods of rising and falling home values, the end result is this: In the past 20 years, the average home price in the U.S. has grown from about $140,000 to about $503,800 as of 2025.

That is what a bubble looks like.

If you can believe it, the median value of a home in Montana grew by two-thirds in just four years…

Montana’s typical home value has increased by two-thirds in four years, according to new valuations published this month by the Montana Department of Revenue.

The department estimates that the median residential property in Montana was worth $378,000 as of the beginning of last year. Four years previously, before the state housing market blew up during the COVID-19 pandemic, the median value was $228,000 — meaning values have increased 66%.

Here;  The Biggest Housing Bubble In The Entire History Of The United States Is In The Process Of Bursting