I listen to what the average person says. I talk to people whenever I can.
Piggs are ahead of the curve by at least 2 years.
There’s still a lot of optimism out there about a housing rebound and you see that in the prices people are listing their houses at.
By all accounts we are already in a recession. And even if we can pull of out of one, 1% to 2% growth rate feels like a recession.
Joe and Jane Homeowners are now exhausting their savings holding onto their houses. There will be a time when they say, “f— it. no house is worth the stress.” When that happens, the housing crash will occur in earnest.
The average person still thinks that we are in period of “adjustment” and the prices will move up again. When that doesn’t happen, the resistance will dissolve in chaos.
Everyone knows that “financing is the gasoline that fuels the market.” Financing is harder to come by, down payments are now required, and there’s no appreciation to be had. The new entrants are not coming in to support prices.
In my mind, new entrants are the foundation that supports the housing market. And the new entrants are all gone.
