(Epic Economist)—There was a time when the American dream included home ownership, but that dream has now become a nightmare for many. That’s because millions of Americans are going to see their home equity being wiped out by the imminent housing collapse.
A report from credit analytics firm TransUnion found that the average U.S. household is struggling to keep up with near 8% mortgage rates, and many are already losing their properties as they get underwater on their mortgage loans.
On top of that, with buyers priced out and more sellers slashing their prices to sell properties before the end of 2023, many major cities are already seeing double-digit quarterly declines, such as San Francisco, where home prices came down by as much as 15% in the third quarter, as well as Seattle, and Austin, which reported a respective drop of 12% and 11% drop during the same period.
The red flags of a housing crash are becoming more apparent. If you’re new to our channel, thank you for joining us. Today, we will break down the latest data on the real estate market meltdown. And if you’re a regular here, thank you for your support. We have a lot to cover today, so we hope you’re prepared to hear this.
Over the past couple of weeks, major signs of distress emerged in the U.S. housing market, leading experts to worry about where we’re headed. Fortune said that the market is starting to “crack,” while Wells Fargo economists predicted a real estate recession due to rising mortgage rates.
To put it simply, between the high cost of the home and the elevated interest payments, many Americans simply can’t afford to purchase a new home anymore. As a result, sellers are slashing their listing prices right now. Redfin’s most recent housing market update indicates that approximately 1 in 15 U.S. homes on the market decreased in price in the past quarter. Compared to the same period in prior years, this is an alarmingly high rate.
To make things even worse, more than one in 10 homes bought in the past year are worth less than what owners owe on their mortgage. That’s what the new report released by real estate data firm Black Knight shows. About 11% of people who borrowed to buy homes in 2022 now owe more than the properties are worth, a figure that has steadily climbed since the start of 2023.
Moreover, more than one out of every four buyers who purchased a home in the 11 months of 2023 have properties worth less than the loans on them, meaning that they are already underwater on their mortgages and at risk of being foreclosed. That’s a very worrying development. Rising delinquency rates are an indication that conditions will get even more chaotic because once a mortgage payment is more than 90 days overdue, the threat of foreclosure becomes imminent. It is feared hundreds of thousands of Americans could be impacted by foreclosure in December.
The credit crisis can also play a major role as more expensive borrowing costs could further reduce the affordability of homes. When access to credit becomes more restricted, it can impact the number of potential buyers, and slow down property sales. In addition, global economic events, such as ongoing geopolitical conflicts, China’s economic downturn, and global food shortages can spill over into local property markets, affecting investor sentiment and confidence.
Ultimately, the coming housing crash will destroy the wealth many hard-working families took decades to build. And that’s the saddest part of this crisis because we can already see the slow-motion train wreck happening before our eyes. But the Federal Reserve and the federal government are still going to let it happen. It’s only by taking the equity of the bottom 90% of Americans that they will be able to stop the bleeding caused by the trillions of printed dollars that they pumped into the economy since 2020.
Don’t be mistaken. This is a man-made disaster. They want you to lose everything you worked for so that they can bring inflation down again.
Independent Journalism Is Dying
Ever since President Trump’s miraculous victory, we’ve heard an incessant drumbeat about how legacy media is dying. This is true. The people have awakened to the reality that they’re being lied to by the self-proclaimed “Arbiters of Truth” for the sake of political expediency, corporate self-protection, and globalist ambitions.
But even as independent journalism rises to fill the void left by legacy media, there is still a huge challenge. Those at the top of independent media like Joe Rogan, Dan Bongino, and Tucker Carlson are thriving and rightly so. They have earned their audience and the financial rewards that come from it. They’ve taken risks and worked hard to get to where they are.
For “the rest of us,” legacy media and their proxies are making it exceptionally difficult to survive, let alone thrive. They still have a stranglehold over the “fact checkers” who have a dramatic impact on readership and viewership. YouTube, Facebook, and Google still stifle us. The freer speech platforms like Rumble and 𝕏 can only reward so many of their popular content creators. For independent journalists on the outside looking in, our only recourse is to rely on affiliates and sponsors.
But even as it seems nearly impossible to make a living, there are blessings that should not be disregarded. By highlighting strong sponsors who share our America First worldview, we have been able to make lifelong connections and even a bit of revenue to help us along. This is why we enjoy symbiotic relationships with companies like MyPillow, Jase Medical, and Promised Grounds. We help them with our recommendations and they reward us with money when our audience buys from them.
The same can be said about our preparedness sponsor, Prepper All-Naturals. Their long-term storage beef has a 25-year shelf life and is made with one ingredient: All-American Beef.
Even our faith-driven precious metals sponsor helps us tremendously while also helping Americans protect their life’s savings. We are blessed to work with them.
Independent media is the future. In many ways, that future is already here. While the phrase, “the more the merrier,” does not apply to this business because there are still some bad actors in the independent media field, there are many great ones that do not get nearly enough attention. We hope to change that one content creator at a time.
Thank you and God Bless,
JD Rucker
