by Thinker
Will the housing crash and economic collapse happen in 2018? The housing market indicated that a crisis was coming in 2008. Is the same thing happening once again in 2018? For several years, the housing market has been one of the bright spots for the U.S. economy. Home prices, especially in the hottest markets on the east and west coasts, had been soaring. But now that has completely changed, and home sellers are cutting prices at a pace that we have not seen since the last economic collapse and stock market crash.
In case you are wondering, this is definitely a major red flag for the economy. Even though the stock market has been booming, everything else appears to indicate that the U.S. economic collapse is imminent. If home prices continue to fall precipitously, that is going to put even more pressure on the system, and it won’t be too long before the housing crash will happen. The storm clouds are growing more ominous with each passing day, and at some point time will run out.
Home Prices Drop in New York and San Francisco, U.S. Housing Bubble Deflating?
Two of the biggest U.S. cities, New York and San Francisco, are seeing some very big home price declines in the past few months. These are also 2 of the American cities that saw home prices climb the most since the bursting of the previous U.S. housing bubble in 2008. In addition to falling prices, inventory is increasing and sales are seeing a significant slowdown in the past few months, in both cities. Also, the federal reserve is signaling that the interest rate hikes are just getting started. The real estate slowdown in the bubble cities could be just getting started.