The national median existing home price dropped 1.7 percent in April 2023, the largest year-on-year drop since 2012, according to recent reports.
The U.S. housing market’s instability and uncertain future appeared to be a hot topic on Monday, with experts weighing in on the potential for a major crash. While this is great news for those of us who are waiting to buy outright, the consequences could be dire for Americans locked into overvalued homes with high mortgage rates.
Popular Twitter account Unusual_Whales, which has accrued 1.3 million followers with its coverage of stocks, options, and market news, wrote on Monday that “US home prices have had their biggest annualized drop in over 11 years,” a fact confirmed by Markets Insider. The median existing-home price dropped to $388,800 in April 2023, the National Association of Realtors reported.
The slump is combined with sky-high mortgage rates, which climbed from 5.25 percent to 6.35 percent between 2022 and 2023, MI continued. Sales of new homes also dropped significantly between March and April 2023, coinciding with price slumps that appear to be focused on the western U.S. at the moment.
But as goes California, so goes the rest of America. And the housing crisis in the Golden State is so serious that even the Netflix reality show “Selling Sunset” couldn’t avoid talking about it in its latest season.
‘Selling Sunset’ Spells Doom For Housing Market | @DailyCaller
What happens in California comes for the rest of America. Read this and be warned (not that I haven’t been warning you for years). https://t.co/zwoMPSgqYA
— KAY SMYTHE (@KaySmythe) May 22, 2023
Rental prices in New York City also reached record-breaking highs on Thursday. With no specific reports confirming, it’s fairly obvious to anyone with common sense that most people with high financial literacy are looking to rent until the housing bubble bursts, freeing up massively overpriced property for new buyers to come in. (RELATED: ‘I Brought Some Cyanide’: Another Billionaire Investor Predicts Devastating Economic Collapse)
In the meantime, landlords are doing everything in their power to cash in quick before the bottom really falls out at some point, likely in the near future. With more Americans struggling to keep up with our overindulged, expensive lifestyles, whatever happens next with the economy could send ripples throughout society for generations to come.