Real Estate CRASH starting NOW!

What has happened these past five years is that INVESTORS (like Zillow, Opendoor, Offerpad, and others) have been buying up houses as a speculation. This speculation trend is now ending. Investors will flee the real estate market when a big domino falls (like Zillow getting out of the market recently). It hasn’t happened as yet in my area of Arizona, but I sense the END of this speculation is near! The markets will crash in 2022!

This video gives key evidence on what is happening within our real estate markets. The new trend that is developing now is a trend of investors getting OUT of the market as demand wanes:

I have watched my area here in Arizona as it produced record price appreciation these past five years. Phoenix prices have increased over 32% this past year. This is now a big problem for new buyers as affordability is not getting better. All this will cause the biggest CRASH in home values (in history) when the big investors FLEE the markets. This is likely in 2022 (first quarter).

As our Fed tapers their buying of assets, this will dry up these stimulus $$$$$ which these investors have used to speculate in our house markets. Zillow has recognized the reality of their situation and I suspect that Opendoor, Offerpad, and the others will recognize this reality soon. This means that the biggest real estate crash in history will happen in 2022 (given the current trends).

My review of homes in Phoenix reveal that the Median Price is $485,000 but price reductions have started. If our Fed continues with their taper policy and interest rates trend upward in 2022, the housing market will suffer from a lack of buyers. This means that all these investors who have speculated on the price increases these past five years will EXIT the markets quickly. Watch this happen in early 2022.

Real estate is in a HUGE bubble as I write. This bubble will deflate quickly once these investors flee the markets and prices crash from these bubble levels. What has pumped up all these housing markets are these investors (Zillow, Opendoor, Offerpad, and others). These investors have speculated on continuing price increases and when this STOPS (soon) all will change QUICKLY. Prepare for the biggest real estate crash in our history. It is likely to start in early 2022 and continue for years. Warn your friends now!

The bubble can not continue! Affordability is the issue!

The losses reveal that house value speculations are ending!

I am: Donald B. Swenson, Valuation Consultant/Appraiser/Economist, https://kingdomecon.wordpress.com.