It'll Be Worse Than 2008
... the data tells the story
From various metrics, the housing market, especially in Florida and Texas, is much worse than it was in 2008 - ALREADY…. the pain hasn’t even started….
The middle class is hurting - bottom 60% of America now owns 3% of the wealth. The majority of the money is funneling to the ultra wealthy.
The middle class consumer is loaded up with debt, holding 28% more debt than 2008. ← this is the biggest issue
Prices are much higher & interest rates are nearly the same as the 2008 time period. This impacts affordability.
New homes for sale in the South are already HIGHER than they were in 2008.
Existing Homes Sales across the United States are down 40% from the peak.
Institutional buyers have stopped purchasing.
Long-term demographics are not looking good for Florida.
Relocations to Florida have fallen 80% from the peak.
Weakness beginning to show in the labor market, which will impact housing.
Decoupling of the 10-year treasury and mortgage backed securities (i.e. less demand for MBS).
FHA/VA foreclosures are slated to hit the market over the next 12 months after 4 years of virtually no foreclosures.
For this data and MUCH MORE, watch here.
jon@movewithmomentum.com
w: thinkbigquestioneverything.com