Based on a chief economist, US house prices are expected to drop 20% since the sector is already in a recession.
The Biden economy is imploding. The question is whether it is intentional or due to the Biden/Obama Administration’s ignorance in economics.
TGP previously reported that home building is now taking a big hit due to this economy.
Now adding to the horrible economic news is a chief economist’s belief that house prices are going to drop 20% in the US.
Ian Shepherdson, a chief economist at Pantheon Macroeconomics, pointed out that home prices have already declined by about five percent from their peak in May and will continue to tumble.
According to his previous work, there are now 40 percent more single-family homes available than four months ago – and previously occupied home sales have slowed for the seventh month straight.
Prices for homes sank by 0.7 percent in August, but Shepherdson predicts a total decline of up to 20 percent by the middle of 2023.
He warned that the plunging trend in sales ‘has further to go’ and that prices are falling as the US enters the fourth quarter of 2022.
The recession, in effect, will encompass all aspects of the housing industry in the coming months, he claims.
Shepherdson said in a note to his clients: ‘The very low level of inventory means that a headlong collapse in prices is unlikely, but we still expect a total decline of up to 20% by the middle of next year.
‘Housing, in short, is in recession, and everything connected to housing either is in recession now or soon will be.’