“The Math No Longer Works” As Sky-High Mortgages Pop Housing Bubble | Wolf Richter

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https://youtu.be/71HnRyxfLkY

“After mind-boggling ridiculous spikes, home prices in most markets are dropping. And in some markets, they’re plunging at the fastest pace on record And in some cases, they’re going down faster than they’d spiked on the way up. And it’s just the beginning.”

So says analyst Wolf Richter in his recent post “The Housing Bubble Has Popped, and the Fed Can Let it Rip”

Just how bad may things get from here? We sit down with Wolf to find out.

The Housing Crash Has Begun | Analyst Nick Gerli

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The housing market is tipping into correction before our eyes. Home sales are dropping nearly 50% in certain markets. Listings inventory is ballooning. Price reductions are spiking.

Perhaps this is all as should be expected when mortgage rates double in the span of a single year. But this is only just the beginning warns housing analyst Nick Gerli. He expects the price corrections to get much deeper as we head into 2023.

Could Home Prices Crash As Much As In 2008?

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Housing analyst Nick Gerli returns to the program to warn how swiftly the prospects for home prices are eroding.

Confidence in the housing market was supreme just a month or two ago. But suddenly that confidence is vaporizing as an increasing number of experts now caution of a “full blown” correction ahead.

Rising mortgage rates are a huge part of the equation, but we’re already starting to see sales slowing and even price cuts in a number of markets — especially the ones that have been

the hottest in past recent years.

Does Nick still think prices could come down by as much as 30% on average?

Could we indeed see price declines on par with the 2008 crisis?

To see what the latest data is telling on these points, watch our just-released interview with Nick Gerli.