— OW (@OccupyWisdom) August 8, 2018
— Financial Survivalism (@Sawcruhteez) August 8, 2018
The housing market has entered a recession of its own and nobody seems to notice. Mortgage apps sank 3% in the Aug 3rd week, down now for four weeks running, and the YoY trend has collapsed 17% from year-ago levels.
— David Rosenberg (@EconguyRosie) August 8, 2018
Banks continue to tighten lending standards for credit card borrowers as defaults rise. Underwriting requirements in this sector are now the strictest since 2009. t.co/UFCy3lit9I via @SoberLook pic.twitter.com/fIoEpNmFjj
— Jesse Felder (@jessefelder) August 7, 2018
From London to Sydney and Beijing to New York, house prices in some of the world’s most sought-after cities are heading south.
Tax changes to damp demand, values out of kilter with affordability and tougher lending standards have combined to undermine the market. That could have wider implications because the world’s wealthy have been buying homes on multiple continents, meaning a downturn in one country could now pose more of a threat to markets elsewhere, according to the International Monetary Fund.
These charts explain the cracks appearing in some of the world’s most exclusive and desirable property markets.
Prices in the U.K. capital are starting to fall as fears about the impact of Brexit, a slowing economy and high prices damp demand. Sales volumes are down and more properties are being offered for sale as sentiment turns. Properties in central London’s best districts have fallen almost 18 percent since their peak in 2014, with some homes losing as much as a third of their value, according to research by Savills Plc. At the same time developers began work on a record number of pricey apartments, creating a glut of multimillion-pound penthouses in a city with a chronic shortage of affordable housing.
Well what did we expect?
With lots of foreign buyers a weak ¥ and a strong $, stagnating wages and a bubble market, nobody will buy.
It's bubble popping time. pic.twitter.com/7gVJ6GSQsZ
— Azurescens (@Old_soul84) August 8, 2018
Housing market FOMO is hitting an all time high. So we are either entering a lockout phase where home ownership is no longer viable for the bottom 80% or more likely we are entering the late stages of an epic bubble where people are going to lose their houses in the next recession. what do u think?