BIDENOMICS - EVEN THE RICH SUFFER BUT MIDDLE AMERICA WILL TURN THEIR JOBS OVER TO 'CHEAP' LABOR ILLEGALS AND ULTIMATELY PAY FOR ALL THE BANK BAILOUTS

  AMERICA IS HARDLY A 'SANCTUARY' FOR MIDDLE AMERICA!

This elite-created migration also helped to spike inflation — especially for housing. The result is that migration-spiked inflation outpaced wage growth, and median wages fell by 1.4 percent for 150 million Americans in President Joe Biden’s cheap-labor economy. NEIL MUNRO

Housing Crash Begins As US Housing Market Enters 2023 In A Massive Bubble

https://www.youtube.com/watch?v=wKCMu063FK0

If you’re waiting for a housing market crash so that home prices become affordable again, analysts say you won’t have to wait that long. The market is expected to spiral downward this year as a series of indicators suggest that more trouble is ahead. Experts warn that the free-fall has already begun, and we’re now witnessing eerily similar circumstances to the 2008 disaster. From December 2021 to December 2022, housing affordability has plunged by almost a third. That explains why single-family home sales fell for the 11th straight month. Even Warren Buffett’s favorite metric suggests that a major reversal is underway. The Berkshire Hathaway Inc CEO once explained that one of the key metrics he watches for a downturn in the housing market is a reduction of housing starts. With more and more Americans being turned off by high mortgage rates and builders being forced to cut back, construction on new homes declined by almost 6.5% from October levels, and 4.1% from November levels, and this trend will likely continue through 2023. Compared to the same time last year, housing starts actually dropped by 9%. But still, the boom in construction seen in 2021 and in the first two quarters of 2022 is about to inundate the market with new supply, and that’s the perfect recipe for crashing prices, says David I. Kranzler from investing.com. Another breathtaking contraction in housing prices is just a matter of time, Krenzler stresses. Although the lending abuses that occurred in the run-up to the last bubble haven’t been repeated, the economic reality for millions of Americans remains undeniably stark, the expert notes. We don’t have mortgage-backed securities anymore, but the housing market is rapidly freezing right now. Fewer buyers are willing to commit to new purchases due to the higher monthly payments while fewer sellers are willing to list their homes in a weakening market, particularly considering that declining prices could mean taking a loss. Put it together, affordability is plunging, mortgage costs are going through the roof, and a flood of newly built homes is about to enter the market, vastly increasing supply. It goes without saying that this is a very dangerous combination. The risks of a real estate collapse continue to mount, and a series of stocks will also suffer, just as we saw during the last crash. “That’s because consumers have so much of their wealth tied to their homes,” Kranzler explains. “The bottom line is that the housing market is in serious trouble. So it’s imperative to protect your portfolio from another “Lehman moment.”  The fact that many real estate companies are already in deep financial trouble further proves that the housing market meltdown is already upon us. At the same time, in the past quarter, investor home purchases also plummeted by 30%. Homebuilders are also being impacted by this tighter environment. Cancellation rates have accelerated during the fourth quarter compared to the third quarter, jumping to over 20% from 13% in the previous quarter. The housing market crash is just starting to build momentum. If we observe the sizable decline in existing home sales in November – 7.7% from October on a seasonally adjusted basis and the 35.4% plunge year-over-year, we can clearly see that conditions are deteriorating alarmingly fast. That actually marked the biggest yearly decline since autumn 2008. Officials say that conditions are different this time around. And that may be partially true. But unfortunately, the result is going to be the same. For more info, find us on: https://www.epiceconomist.com/

Luxury Home Sales Crash 38 Percent in Record Decline amid Economic Woes

iStock/Getty Images Plus

AMY FURR

2 Jan 202315

2:53

Luxury home sales took a significant plunge recently as the nation grapples with economic problems.

Forbes reported Monday:

Sales of luxury homes fell 38.1% year over year during the three months ending November 30, 2022, the biggest decline on record, according to a new report from Redfin, a technology-powered real estate brokerage. That outpaced the record 31.4% decline in sales of non-luxury homes. Redfin’s data goes back to 2012.

The luxury market and the overall housing market lost momentum in 2022 due to many of the same factors: inflation, relatively high interest rates, a sagging stock market and recession fears.

Meanwhile, America’s housing market is enduring its second-largest price correction since the end of World War II, according to Breitbart News.

Founding partner of Macro Trends Advisors Mitch Roschelle explained the correction is due to citizens’ uncertainty and worries over economic issues:

A couple of things are going to cause it to turn in the opposite direction, meaning home prices are going up. One is certainty. And when you don’t know if interest rates are going to go up or not. I think that is what is driving a lot of people away from buying because they just don’t know if rates are going to be cheaper in two months, and they’re just going to wait.

And the other thing is uneasiness regarding the economy. And I think the shoe to drop there would be if we start seeing layoffs, and we start seeing unemployment starting to rise, I think that could be something that causes a leg down in the housing market in a big way.

A recent poll found most Americans are still concerned about the economy under President Joe Biden’s (D) leadership, Breitbart News reported December 16.

“Out of 1,000 likely voters surveyed between December 12-13, 86 percent say they are concerned about the economy, including 60 percent who are ‘very concerned,’ reflecting an overall increase in concern since August,” the article said.

Per the Forbes report, there are indications that demand is making a comeback in the housing market as interest rates go down.

Austin Allison, Pacaso CEO and co-founder, recently spoke about the real estate industry during an interview on Fox Business, stating, “What we experienced over the course of the last couple of years was not normal, you know, homes selling in a couple of days for multiples over ask is not sustainable.”

“What we’re seeing now is a return to normalcy, so when you see the headlines that real estate is down 30 percent year over year, it’s important to remember that real estate transactions are actually still up quite a bit when compared to pre-pandemic levels,” he added.