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90 Percent Housing Market Crash Forecast
Peter Schiff, the economist who predicted the 2008 housing market crash now predicts an 80% to 90% housing crash. Don’t underestimate Peter Schiff. Schiff has been spot on his housing and economic forecast for years. Government should not intervene on the open market. The FED printing money has a disastrous impact on the overall economy. Government control and guarantee railroads the housing and banking system where it disrupts the overall economic development system and the end result is a financial crisis. Homeowners who purchased homes are barely surviving and many cannot afford their housing expenses. Homes are getting reasseessed where property taxes are increasing 50% and more. Homeowners insurance is doubling in many areas. Many people cannot afford the maintenance in their homes where the end result will be a tear down. Bankruptcy and foreclosure numbers are skyrocketing at historic highs. Watch Peter Schiff’s commentary on the state of our economy.
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1 Reply
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Forecasts of a housing market crash by 90 percent is an extremely severe prediction and unprecedented in modern economics. Though I am not able to speculate about what will happen in future markets, certain things can be said for sure when it comes to making predictions about them:
Historical Context:
In recent memory, we saw our biggest decline during the US housing sector’s crash. It occurred between 2007 and 2008. This was due largely to banks creating too many subprime loans. Prices dropped approximately thirty to forty percent on average across America.
If this were true, it would still pale in comparison since no developed nation has experienced anything close to nine times smaller crashes before.
Current Market Conditions:
- In 2021, most cities have record low inventory coupled with high prices.
- Interest rates always matter most when considering how stable any given market can be at a time like now.
Problems with forecasting:
It’s well known among analysts that making predictions about the future of real estate is typically wrong.
According to consensus reports, these people do not see such drastic changes coming up next year or so as likely.
Factors Affecting Housing Markets
- Supply and demand.
- Interest rates.
- Economic conditions such as employment levels and wages.
- Government policies, including regulations on lending practices.
- Geographical location(s).
Understanding extreme predictions:
- While they may seem attention-grabbing, these dire forecasts do not represent common beliefs among experts in the field.
- Such cases ask one to question how such information was derived from its source.
A more balanced view:
Most financial advisors suggest taking a long-term approach toward investing in properties. Spreading one’s investments over different sectors could help reduce risks associated with failing investments. Nonetheless, it is crucial that we remain aware of trends within the property market. Equally critical is our need for skepticism when faced with doom-filled prophecies. For expert advice tailored to your needs, please contact a financial planner familiar with housing industry trends.
Would you like to know more about how to evaluate predictions made about the property market or the factors influencing them?