America’s housing market has been in a “deep freeze” for more than a year. The combination of very high interest rates and very high home prices has frozen millions of potential buyers out of the market. As a result, home sales have fallen to extremely depressed levels. When I first warned that we were heading into a housing market depression, a lot of people thought that I was exaggerating. But now the numbers show that is exactly what has happened. The following are 6 signs that the housing market depression in the United States is getting even worse.
#1 Sales of previously-owned homes in the U.S. just fell again. In fact, we just witnessed the slowest April that we have seen since 2009…
The spring housing market continues to struggle amid high interest rates and low consumer confidence.
Sales of previously owned homes in April declined 0.5% from March to a seasonally adjusted, annualized rate of 4 million units, according to the National Association of Realtors. That is the slowest April pace since 2009.
In 2009, there were 306 million people living in the United States.
Today, there are 340 million people living in the United States.
So the fact that we have fallen to a level that we haven’t seen since the Great Recession should deeply trouble all of us.
#2 Sales of previously-owned homes are falling even though active listings and new listings are both rising…
Active listings—the total number of homes for sale—last month hit the highest level since March 2020. They climbed 1.2% from a month earlier on a seasonally adjusted basis and rose 16.7% year over year.
New listings rose to the highest level since July 2022, increasing 1.3% month over month on a seasonally adjusted basis and 8.6% year over year—the largest annual gain since May 2024.
“A lot of people are selling their homes and downsizing because they’re worried about the economy,” said Meme Loggins, a Redfin Premier real estate agent in Portland, OR. “During the pandemic, everybody wanted more space for a home office or for their kids to run around, but now people are more focused on saving money. A lot of folks are getting rid of their investment properties, and I’m working with a couple of federal employees who are afraid of losing their jobs, so they’re selling their homes and thinking of moving into condos.”
#3 Most potential young homebuyers have been completely forced out of the market. Shockingly, the average age of a homebuyer in the U.S. has surged to an all-time record high of 56…
The average age of homebuyers in the U.S. has risen by six years since July 2023 — another sign that younger Americans are being priced out of the market due to escalating ownership costs.
The average age of homebuyers is now 56, up from 49 in 2023, according to the National Association of Realtors’ annual state-of-the-market report released Monday. That’s a historic high, up from an average age in the low-to-mid 40s in the early 2010s.
#4 The median age of first-time homebuyers is spiking as well…
The median age of first-time buyers also rose from 35 to 38, while the share of first-timers dropped from 32% to 24% of all buyers for the year ending July 2024. That marks the lowest percentage since NAR started tracking the metric in 1981.
“In my two decades in the mortgage business, I’ve never seen a more difficult time for millennials to purchase a home,” says Bob Driscoll, senior vice president and director of residential lending at Massachusetts-based bank Rockland Trust.
This is a really bad thing for our society.
If most young couples cannot purchase a home until they are in their late thirties, something has gone horribly, horribly wrong.
#5 Zillow is reporting that home values have fallen in 27 U.S. states so far this year. Is this the beginning of a price crash?…
Home values fell in half the country as the housing market faces a nationwide downturn.
According to Zillow, monthly home values dropped in 27 out of the 50 states this year. While Florida, Colorado, Washington, D.C., California and Washington state experienced the greatest value declines from March to April, the data could foreshadow a larger housing market shift.
#6 Meanwhile, employers continue to conduct mass layoffs all over the nation, and this is only going to increase pressure on the housing market. For example, Walmart just announced that it will be laying off about 1,500 very well paid corporate employees…
Walmart is laying off around 1,500 corporate employees across various departments within its home office in Bentonville, Arkansas, multiple reports say.
In a memo shared with associates on May 21, Walmart executives said the company is “reshaping” some of its teams in an effort to modernize its business and enhance “associate, customer and member experiences.”
Most of the U.S. population simply cannot afford to shell out several thousand dollars for a mortgage payment every month.
Either interest rates will have to come down or housing prices will.
And if housing prices start falling like we saw in 2008 and 2009, that will cause all sorts of problems for our major financial institutions.
So hopefully the Federal Reserve will cut interest rates before it is too late.
One recent survey discovered that financial stress is at an all-time high for 70 percent of the U.S. population.
Absurdly high housing costs are one of the biggest reasons why so many people are financially stressed right now.
Home prices are way too high and so are rental prices.
If you were able to purchase a home and lock in a mortgage more than five years ago, you were extremely fortunate.
Those that wish to relocate now are facing ridiculously high prices and painfully high interest rates.
It has been said that he who hesitates is lost.
In this case, that is so true.
A lot of people out there that waited to pull the trigger have completely missed their chance.
Now the housing market is entering a very difficult chapter, and a tremendous amount of pain is ahead.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com. He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.