This “Uncooked” Data Proves It: Another Housing Crash Is Coming
As mortgage rates rise, fewer buyers will be able to afford to buy at current listing prices. Sales volume will drop sharply, just as it did between 2005 and 2007.
Just as from 2006 to 2008, prices probably won’t break until the year after sales begin to collapse; home sellers can be stubborn about that.
But once a few start to feel the pressure, the dam will break, the number of listings will balloon, and prices will start coming down.
So much for the housing market. But the crisis will become “real” to the financial system, and the markets, when mortgage collateral value disappears.
via Money Morning This “Uncooked” Data Proves It: Another Housing Crash Is Coming