Price Correction ‘Worse Than 2008’ Coming To US Housing Market—Analyst
Summary
A housing analyst, Melody Wright, predicts a significant drop in U.S. home prices, potentially cutting prices by half, worse than the 2008 market correction. She notes that while high-priced homes are still selling, there is an increase in sales of lower-priced homes, which could lower the overall median home price. Concerns about investors leaving the market and the government possibly stepping in are highlighted.Key Facts
- Analyst Melody Wright predicts a severe drop in U.S. home prices, potentially worse than the 2008 downturn.
- In recent months, high-value home sales continue, but sales are also increasing at the lower end of the price market.
- The median home price has shown little annual growth, being just 1.2% higher than last year at $439,701.
- A Zillow report states 53% of U.S. homes lost value over the past year, the highest since 2012.
- Many Americans still face high home prices, property taxes, and borrowing costs, keeping them out of the market.
- Wright fears a scenario where government intervention might be needed if investors pull out.
- Sales of homes priced between $100,000-$250,000 are growing, possibly leading to a decrease in the median home price.
- Wright refers to a prior fear about the impact of President Trump's policies on the housing market.
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