Yesterday, the National Association of Realtors released their latest pending home sales data and instead of a forecast 2.2 percent the numbers came in negative 2.2 percent.
Our favorite Youtuber Reventure Consulting has gone a bit hyperbolic about California real estate but there is validity to the changing California economic landscape. Affordability, taxation, and general government policies have driven people and businesses away from California but the housing market across the United States is way overvalued in our view.
The Wall Street Journal also commented on how home prices have started to cool recently.
“U.S. home prices moved substantially higher, but at a decelerating rate,” said Craig Lazzara, managing director at S&P Dow Jones Indices.
Wall Street Journal
With housing, stocks, commodities, and digital currencies all continuing to climb higher and higher and labor and productivity going lower and lower, this won’t end well. It is starting to feel like the roaring 20’s and we all know that ended in a massive depression in the late 11920’s and early 1930’s. It’s deja vu all over again.
Stay tuned and stay solvent.