RE CEO Says Another Real Estate Crash Could Be Coming
Trump has certainly been a positive influence on the economy, huh? Home values have fallen month-over-month in more than 60 percent of U.S. counties in April, according to data from real estate platform Reventure App. Company CEO Nick Gerli compared the widespread decline to the wake of the 2008 housing market crash and the 2022 mortgage rate spike. Via Newsweek:
"More than half the country is now officially in month-over-month declines, indicating that the housing downturn is spreading," the real estate analyst wrote on X.
"We'll have to see if this lasts into the future, and if it turns into a sustained correction like 2008 or is a blip like 2022. But given the trajectory of listings and inventory, it seems like more value declines are coming," he said.
For years now, home prices have been rising across the U.S, pushed by chronically low levels of inventory and pent-up demand. The homebuying frenzy that characterized the pandemic years, triggered by historically low mortgage rates, accelerated home prices' vertiginous growth, driving the market to new levels of unaffordability for buyers.
Now, the U.S. housing market appears to be at a breaking point: many prospective buyers have been pushed to the sidelines by high mortgage rates and rising housing costs, and while inventory levels are rising, not enough people seem to be able to afford or be willing to venture into the purchase of a home.