The Housing Market Will Collapse via /r/wallstreetbets #stocks #wallstreetbets #investing
The Housing Market Will Collapse
After the median home price has risen at the fastest pace ever for the last two years, there is no surprise a bubble exists.
With the 30 Year Mortgage rates being below 3% for well over a year literally everyone was buying up on the real estate hype.
Homes could not be built fast enough and demand was rapidly outpacing supply, this led to the lowest supply of new houses ever.
Relator.com has some great data anyone can download
This is the housing listings YoY change compared to the Median Home Price YoY change. There was almost a 60% decrease in listed homes from the year before during March of 2021. Now there is a 25% increase in listed homes from the year before… Wow
The three most common building materials for homes are
When the prices of these commodities increase the cost of new homes increases as well which inflates the market.
So we had a lack of supply, exploding demand for houses with low-interest rates, and the building materials skyrocketing from inflation. This has caused one of the biggest housing bubbles in history.
I love how this sub is not denying that there will be a crash like everyone else. The data I used from relator.com showed that there will be a crash in prices. However, their own housing forecast for this year shows prices increasing while sales decrease and inventory increases… this makes no sense even WSB understands that when supply increases and demand falls the price will collapse.
Submitted July 04, 2022 at 06:57PM by 5k4_5k4
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