The Utter Collapse of the Suburban Housing Market
I would like to say that the housing market is only going to slump, or like 2008 drop, and then recover. But it is not.
The entire reason to live in cities is going away. And the new way of living will be soooooo much better, that no one will be coming back to the cities. Even those tribes who choose to stay in the city, will clear the city around them, heal the scars on the Earth, and it will look like the city was never there.
The 15 minute cities open air prisons may be a place that a tribe takes over. Those mother WEFers will build small communities, and they may actually be nice. And, so, after the "overlords" pass away, some tribe may choose to stay there. However, i do not expect the WEFers to actually build a place that is nice for humans to live in. They will make the housing cheap so it falls down, or solid concrete without proper insulation. They will not build it to merge into and be a part of the Earth. It will probably be built near transportation corridors, and not where the Earth provides protection and support for a human settlement. But, who knows, the WEFers could get it right by pure chance.
There are many paths toward the future, but one thing is for certain. The suburban housing market is soon to be dead.
Right now, it is calculated that house prices need to be slashed 50% to bring buyers to buy suburban houses. Unfortunately, by the time the sellers, get this through their heads, they will need to slash prices 75%, but they will find its too late. The sellers will chase the price to zero, and still, many of them will try to hold onto "ownership" and the idea of selling THEIR suburban house.
Demographic collapse
Demographics is the driving force behind markets. And when there is less buyers than there are empty houses, the value of houses drops significantly.
For tax purposes, a house is depreciated completely after 30 years. (varies by state) Meaning, the tax guys see the house as having used up all its value. Needing to be rebuilt.
So, when there are empty houses, and the tax code agrees they are worthless, then that becomes the price.
We are below demographic replacement. Which means that soon, there will not just be no buyers for empty houses on the market, but no one who wants a house that is without a house. And after the immigrants make a run for the border, there will be whole lot of empty houses.
Many suburban tracts will become like ghost towns.
When there are more houses than people who want houses, the real estate market that we have known, no longer exists.
No mortgages - economic collapse
There will be a currency reset. The Dollar is dying. The Euro is dying. The death is already way overdue. It is not a matter of if, it is a matter of when.
Before, or during the reset, the smaller banks are going to go bust. This causes the medium banks to go bust too.
And thus, if one wanted to get a mortgage, they would have to go to the handful of large banks. Who, seeing the housing market collapse, will only lend to people with the best credit and 20%+ down.
This means that only the best houses in the best areas will sell, if at all.
Everything else will be sold for what a person has saved up. What a person can pay in cash.
Or, maybe, BlackRockStone will buy all the houses on the market, for Federal Reserve Notes, that are quickly becoming worthless.
Either way, there will not be a suburban housing market.
People flee the cities
Soon we will have something that disrupts food deliveries. (I am seeing a diesel fuel shortage) And this will cause a lot of worries around starving. And people going broke trying to afford food. People go insane when they are really hungry. This leads to break ins and thefts. Grocery stores may not survive. (they probably won't if food is not available for too long) And places where the grocery stores were ransacked, may not come back.
What this does is it sends a clear signal to anyone who can get out to get out. People who are watching are seeing the writing on the wall, but most people are putting it off. "It isn't that bad yet". But, with food riots, it is that bad.
I do not know if food riots will happen, but there will definitely be food scares and food scarcity. There will be empty shelves all over the supermarkets.
With fuel shortages, we will see many businesses, already teetering, close their doors. If you just got fired, that is one less thing holding you back from leaving the city.
As more stores and restaurants close, there will be more reasons to leave.
The biggest thing will be people moving to be with their "families" / tribes. The Great Migration is starting, and will not stop till everyone finds their "family". There will be few left in the cities.
If you have plans to sell your house, than now is the time to do it. Many investors have already said that it is too late to get a good price for you home. Even with people dropping the prices $10,000 at a time. However, things are not coming back. Waiting just means accepting an even lower price.
Never in our lives have we seen such a housing price collapse as we will see. Right now, people are still holding onto the value that they have in their minds, and so, are waiting for that buyer to ride in on his white horse… it isn't going to happen.
And, each day that passes more boomers are going to be putting their houses on the market. Until, at one point, there is going to be a race to the bottom. When the sellers see that have to be lower than their neighbors to even get interest in their abode, they put their house on the market at a lower price, than the lowest price.
One thing, and only one things may help housing prices. Hyperinflation. Or, at least galloping inflation. The value of the dollar may go down faster than housing prices. Making the house prices seem like they are stable, as the floor falls out.
Sell your house, get out of the city. Or, refinance your house, and get out of the city Or wait until cryptos go way up, and get out of the city (then who cares what your house is worth)