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HOUSING CRISIS: AMERICANS STRUGGLE AS HOME PRICES PLUMMET!
MAJOR SHOCKER! Home Prices Failing to Keep Up with Inflation!
Americans are FEELING THE PAIN as skyrocketing mortgage rates and insane home prices send shockwaves through the housing market! The dream of homeownership is now a NIGHTMARE for many, as wealth generation has come to a screeching halt!
In an EARTH-SHATTERING revelation, Nicholas Godec, a high-ranking expert at S&P Dow Jones Indices, warned that for the FIRST TIME in YEARS, home prices are NOT keeping pace with the soaring inflation that’s spiraling out of control—Ouch! That’s right, the last time this happened was back in mid-2023!
Buckle up for the numbers! The latest S&P CoreLogic Case-Shiller index recorded an UNBELIEVABLE 0.3% drop in home prices from May to June, marking FOUR straight months of declines! While the 20-city index was up 2.1% compared to last year, that’s a steep drop from the previous month when it hit 2.8%! And on the national level, we’re looking at a paltry 1.9% increase—down from 2.3%! Meanwhile, the consumer price index EXPLODED up by 2.7%!
Godec calls it a HISTORIC reversal: “During the pandemic, home values skyrocketed at rates that made homeownership a GOLDMINE. Now? Homeowners are LOSING ground!” Can you believe it? Housing wealth has actually PLUMMETED when adjusted for inflation over the past year—this is a LANDMARK development signaling a daunting new era.
Demand for housing? It’s like a deflated balloon! Despite the spring and summer usually being prime time for real estate transactions, this year’s selling season has been a COMPLETE BUST! Sales of existing homes may have recently ticked up, but they’re still in the DUMPS. New home sales? They’re CRASHING!
Even the experts are sounding the ALARM! Moody’s Analytics chief economist Mark Zandi amped up the warnings last month, declaring the housing market in DIRE straits!
But wait! Godec offers a potential silver lining: “This new normal might actually be HEALTHIER!” He suggests that homes may appreciate more steadily as demand shifts from pandemic hot spots in the Sun Belt to more stable industrial centers.
GLOOM AND DOOM AHEAD! Analysts Predict Home Prices to FALL into the RED by YEAR-END!
In an ominous report from EY-Parthenon, analysts believe the situation will worsen, with home prices forecasted to tumble into negative territory by year-end! Inventory of homes is UP 25% from last year, and listings have been climbing for 21 consecutive months—SUPPLY is SWELLING while demand withers away!
Homebuilders are on HIGH ALERT! With costs still sky-high and demand dwindling, they’re playing it safe. The EY report cautions that as income growth stagnates and borrowing costs remain steep, the housing market is SET to stay in a STALE state, leaving countless dreamers in limbo!
GET READY, AMERICA! The housing market is entering UNCHARTED TERRITORY!
photo credit: fortune.com
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