Zillow Predicts Housing Market COLLAPSE

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Zillow Predicts Housing Market Collapse

After what is undoubtedly one of the worst starts in u.s stock market history, many are beginning to wonder: if we’re headed towards recession, all major indexes are down double digits, and some of last year’s high-flying stocks are down well over 50 percent.

Possible housing bubble

With this uncertainty and turbulence, the attention is now shifting towards housing, which has refused to budge in the past few weeks after one of the best years in history with home prices appreciating over 20 percent, many experts are now predicting a reversal, possibly a crash, an ending Of a major bubble.

Been Brewing Since 2016

That has been brewing since 2016, despite all of this, the housing market on its surface seems stable, scan the dashboards of zillow, redfin and realtor and you’ll see no evidence of a slowdown. Despite what i said earlier, in fact, homes are still appreciating at record prices with median values hitting all-time highs.

Shocking Report

However, a new shocking report seems to have changed the mood, but before i show you that you have to understand that we’re living in a time of incredible opportunity, especially when it comes to growing your money and a large part of that opportunity, is in the global Fintech market.

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On masterworks, now back to the shocking report, I was talking about zillow, arguably, the most in tune real estate company in the world, with data from millions of inputs just released its earnings report, and the findings are suggesting that the market is running out of steam.

In the middle of the report, we find the first piece of significant evidence here we see that new force, sale levels are up 36 percent from February indicating an inflection point.

That inventory may soon be moving up, but there is an asterisk to this. Finding overall, new sales levels are still down nine percent from last year, showing that this could very well be seasonal, as most people list their homes closer to the summer months, pushing listings towards march, but that wasn’t the big finding just below that.

We have richard barton, co-founder and ceo saying this. So while we know people are eager to move, market conditions are making it increasingly difficult. The net result of all of these factors is that total consumer transactional value growth trends are meaningfully softening and even the most respected experts have desperate views of what will happen next.

This guy loves to use big words, but essentially what he’s saying here is that the data is changing and pointing to the fact that homes are becoming increasingly harder to afford and even the most respected experts are showing signs that they don’t really know what will happen .

Next, when he says this, this reviews of what will happen next, it just means that expert opinions are all over the place, showing signs that uncertainty is growing .

There are people like Reventure who claim that the market is going to crash like it did in 2008, and then there are people like myself who don’t claim to be experts but believe it’s just going to be a slowdown with prices remaining relatively stable at current price Points because inventory is just too low to accommodate a real estate crash either way you have to remember that earning reports are essentially a sales pitch, so you have to read between the lines in this report and reading through it.

There are some major concerns, for example, here towards the end. The ceo says some stuff about the deceleration of the real estate market, but he stops short of saying it’s going to crash, which should be expected from a ceo of a major real estate company. But when you read something like this, it does raise eyebrows here.

The ceo is basically saying they can deal with the current headwinds, but if there’s a terrible storm aka major crash, they will still be on top the very fact that he’s even giving this hypothetical situation any attention is a bad sign.

Like i mentioned earlier, when you read an earnings report, you kind of have to take what they said and what they didn’t say, comparing and contrasting the words summarizing with the implied truth after reading this one, you have to admit at the very least it’s slightly concerning In summary, Zillow’s report suggests a softening market for 2022

They don’t say, there’s going to be a crash, but they do spend way too much time.

Talking about a hypothetical major slowdown. Combine this with the fact that we’re seeing an inflection point and that they have sold off nearly all their eye. Buyer houses and you have a solid case for a future crash, but it’s not all clear.

On the other hand, fresh data from redfin suggests home prices are continuing to appreciate, specifically they’re up 17 year-over-year, and demand continues to be strong down just one percent, with a record 56 percent of homes sold above their list price up from 47 a year earlier.

This, despite the fact that mortgage payments are up 42 percent year over year, this is likely the most shocking chart in real estate.

History. Just take a look at that line. Despite this crazy increase, median prices are still going up that to me showcases just how solid this market is. You have to think in order to change the outcome you have to either change demand or supply right now.

Supply is being pinched by the fact that people who bought earlier or refinance to rates below 3 will have a hard time putting up their houses for sale.

When they have to take out new loans at six percent, nobody in their right mind is going to trade, their 2.7 mortgage for a six percent mortgage, so people are staying, put delaying their sales until rates come back down.

Meanwhile, the largest generation in America’s history is eager to buy, Fomo is taking over the market, and the few houses that are up for sale are being bid up to absurd levels. Of course, we will eventually have a crash.

I just think it won’t happen until we see price levels increase to absurd tier something resembling Canada’s Australia’s and New Zealand’s markets.

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