Housing Market: What’s Inside The Leaked Report?

The housing market in 2023 is experiencing a severe crisis, with unprecedented events occurring over the past two years. The government has printed and retracted trillions of dollars at an unparalleled rate, causing interest rates to rise faster than ever before. The housing market is taking the biggest beating from this, resulting in what will go down as one of the most serious housing crises in history. While skeptics may be in disbelief, history has shown that housing prices can crash, just as they did in 2007, and data about the current market is horrifying.

The US national association of home builders' housing market index (NAHB index) tracks the confidence of home builders in the United States and shows that home builder confidence has dropped for 12 consecutive months to just 31 out of 100. The main reason for this is that home buyers cannot take out mortgages at an affordable interest rate, and even if they could, banks are hesitant to approve loans as they know the market is doomed to fail. This lack of demand for homes has resulted in many home builders being stuck holding the bag, unable to sell the homes they built in anticipation of high demand. Even homes that are selling are being sold at huge discounts and with low quality control, causing many issues for homeowners.

Corporate entities, such as banks, are the first to leave when a crisis hits, leaving the middle and lower classes with their life savings invested. Wells Fargo, the number one player in the mortgage industry, is currently backing out of the market, downsizing their entire mortgage division worth $1 trillion in loans. This is similar to what happened in 2008 when Bank of America and JPMorgan Chase slimmed down their mortgage businesses, causing them to lose market share that they never gained back. This trend indicates that the housing market is in a dire state and that something is horribly wrong.

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