Homebuilder WARNING: "Projects are Cancelled. No More Buyers"

46% Collapse in Homebuyer Demand is forcing Homebuilders to abandon projects. And firesale existing Home Inventory. The 2022 Housing Crash just got worse. Especially in cities like Sacramento, Dallas, Phoenix, and Boise.

The National Association of Homebuilders just reported that 46% Decline in New Homebuyer Traffic from the start of 2022. That means that Homebuyers have boycotted the US Housing Market and will not return until a Crash in Home Prices Occurs.

This decline in Housing Demand is occurring just as Home Builders have surged Home Building to the highest levels in 15 Years. There's currently 834k Single-Family Homes Under Construction in the US Housing Market according to the US Census Bureau. That's 60% Higher than 2 Years ago.

This combination of collapsing demand and higher building means the Fall 2022 Housing Market will crash further. It also means the US Economy is likely heading into a Recession. Because historically when Housing Demand falters, and Home Builder Sentiment Declines, a Recession soon follows.

Housing Markets such as Sacramento, Dallas, Austin, Phoenix, Boise, and Salt Lake City are most exposed to this Homebuilder Crash and Recession. Especially as the number of contract cancellations surge. Data from John Burns Real Estate Consulting shows that cancellation rate on newly built homes was elevated 15% in June 2022. I suspect it will go much higher - perhaps to 20% by later this summer.

Some argue that the decline in Home Sales, to go along with lower Homebuilder Sentiment and decreased Housing Starts, is a bad thing for the US Housing Market. They insist that less building going forward will mean the US Housing Shortage remains. The problem with this argument is that the notion of a US Housing Shortage is false.

Over 60 Years of Data comparing Employment and Population to the Housing Stock in America proves that the 2022 Housing Market is weak from a demographic standpoint. And that the apparent shortage is likely a result of US Government intervention in the Housing Market through foreclosure bans, eviction moratoriums, rental assistance and artificially low interest rates.

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Видео Homebuilder WARNING: "Projects are Cancelled. No More Buyers" канала Reventure Consulting