Americans, whose wealth is largely tied up in their homes, face the looming threat of a housing market crisis as home prices teeter on the edge.

Americans are poor people with a manipulated home price.

They don't have/save shit pic.twitter.com/j8b8IDajcU

— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) April 7, 2024

Guys this time is totally different!

Also this time: pic.twitter.com/65cBdcJZDn

— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) April 7, 2024

How many people have held onto their house because they were told rates would come down before their renewal? t.co/DegvHwCkOK pic.twitter.com/94vKjQwzd1

— Financelot (@FinanceLancelot) April 8, 2024

Consider a homeowner who purchased a house for $300,000 with a mortgage of $250,000. If the housing market experiences a downturn and the home’s value drops to $200,000, the homeowner would be left with negative equity of $50,000. This could make it challenging to sell the home or refinance the mortgage.