Why do expert say: Buckle in for a brutal free-fall in home prices - Housing Bubble

[Anonymous]

Buckle in for a brutal free-fall in home prices and US housing is in a massive bubble, experts say

https://www.yahoo.com/finance/news/buckle-brutal-free-fall-home-090000513.html

The US housing market is cratering, as the Fed's rapid interest rate hikes send mortgage costs soaring. Home sales have fallen for 8 months, and prices are dropping. But economists say worse is to come.

[Anonymous]

Anonymous wrote:Buckle in for a brutal free-fall in home prices and US housing is in a massive bubble, experts say

https://www.yahoo.com/finance/news/buckle-brutal-free-fall-home-090000513.html

The US housing market is cratering, as the Fed's rapid interest rate hikes send mortgage costs soaring. Home sales have fallen for 8 months, and prices are dropping. But economists say worse is to come.

Do you believe them anymore?

[Anonymous]

The recession is coming, of course. But in the neighborhoods DCUM usually lives in, I don't believe we'll see much of a dip in prices.

[Anonymous]

Prices aren’t going to free fall in any of the W clusters.

[Anonymous]

Prices will continue to fall in most parts of the country, especially those areas that saw prices spike but don't have the local economy to support it. Much of DC proper didn't spike as much so not as far to fall. Also parts of DC will stay more popular as other areas experience spikes in crime. Home value deflation won't be even across DC or DMV.

[Anonymous]

Anonymous wrote:Prices aren’t going to free fall in any of the W clusters.

Oh people are smart enough to realize these districts are overcrowded and overrated

[Anonymous]

Anonymous wrote:Prices aren’t going to free fall in any of the W clusters.

This is what my realtor said in 2007 when it was peak. It did fall down from 1.2 million to 700K in 2013

[Anonymous]

Anonymous wrote:

Anonymous wrote:Prices aren’t going to free fall in any of the W clusters.

Oh people are smart enough to realize these districts are overcrowded and overrated

This is a good observation, but it really applies to the entire DMV. The reason that prices didn't increase as dramatically in the DMV during covid as elsewhere in the country is because the DMV is just not that desirable. And that's also the reason that the DMV, including close in areas, will not be immune when the bubble bursts.

[Anonymous]

I just don’t get how prices will fall when supply is so low.

[Anonymous]

Nope. No inventory.

[Anonymous]

We're looking (not urgent) and inventory is...fine really. Up from last year really. Prices are falling a bit. But they need to fall more to make up for the increase in payments were looking at due to rate increases (almost $1,500 a month on the ~1ms were looking at!).

We're hoping we find something in the spring and are not stressed about it.

[Anonymous]

Anonymous wrote:I just don’t get how prices will fall when supply is so low.

They won’t. They should but they won’t. It’s a death spiral for anyone who didn’t buy before 2022.

[Anonymous]

Anonymous wrote:We're looking (not urgent) and inventory is...fine really. Up from last year really. Prices are falling a bit. But they need to fall more to make up for the increase in payments were looking at due to rate increases (almost $1,500 a month on the ~1ms were looking at!).

We're hoping we find something in the spring and are not stressed about it.

Says the person with an inherited DP and/or 1.3+ M budget.

[Anonymous]

Anonymous wrote:Nope. No inventory.

Really? I am seeing lots of inventory in the inside-the-beltway surburbs in Moco, Arlington, and Fairfax. It's just that sellers still are pricing like it's the spring.

[Anonymous]

Anonymous wrote:Buckle in for a brutal free-fall in home prices and US housing is in a massive bubble, experts say

https://www.yahoo.com/finance/news/buckle-brutal-free-fall-home-090000513.html

The US housing market is cratering, as the Fed's rapid interest rate hikes send mortgage costs soaring. Home sales have fallen for 8 months, and prices are dropping. But economists say worse is to come.

Economists have accurately predicted 15 of the previous 3 recessions.