Wealthy Living

6 Reasons to Fear Greed: Will There be a Painful Housing Market Crash?

Home prices in the United States have reached new highs and are rising, prompting some researchers and economists to warn that a bubble is forming and a housing market crash will soon follow.

According to some academics and economists at the Federal Reserve Bank of Dallas, home prices are rising faster than market forces suggest and are becoming unhinged from fundamentals.

Until recently, many did not accept there would be a housing bubble. However, after studying housing markets across the United States, the Fed experts concluded that fresh trends are developing.

Will There be a Housing Market Crash?

Although the present housing market is "abnormal, "there is no expectation that the repercussions from a housing correction will be equivalent to the severity of the 2007–09 crisis.

Household balance sheets appear to be in better health. Excessive borrowing does not support the housing market boom. Participants and regulators have better tools.

With this in mind, my swing trading course might be of interest to stock investors, but for housing market investors, this post highlights the the elements causing the concern.

1) Millennial Demand for Housing

The number of prospective homebuyers is abundant, with Millennials and younger Americans accounting for half of the population, or 166 million people.

According to data from the National Association of Realtors, first-time homebuyers account for the highest number of individuals buying homes (31%).

2) Supply Cannot Keep up With Demand

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