Is the US housing market on the brink of collapse?

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In a recent alarming revelation, economist George Gammon has sounded the alarm bells on the US housing market, declaring it “WILDLY overpriced” and emphasizing that affordability is solely determined by the ability to make next month’s mortgage payment. According to Gammon, people are struggling to pay rent as their overall living costs skyrocket.

For the past two years, Gammon has been fervently cautioning against the prevailing notion that house prices rise solely due to inflation. Dismissing this belief with a straightforward “No morons, no,” Gammon points out that the promised lower mortgage rates for 2024 have failed to materialize, as rates have surged back above 7%.

The market, once anticipated to go crazy, is now showing signs of distress, with a slew of new bearish indicators emerging in the weekly housing data. Despite the spring season typically driving prices higher, list prices have stagnated, registering a meager +0.2% Year-over-Year (YoY) increase according to Realtors. Moreover, price cuts are soaring, adding to the growing concerns about the stability of the housing market.

As the US grapples with economic uncertainties and rising living costs, Gammon’s two-year-long warning gains prominence. Is the housing market standing at the precipice of a collapse? Only time will reveal the true extent of the crisis that may be looming over the American real estate landscape.

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