Housing Market Crash Fears Rise — Foreclosures Up 20% and Climbing

"And my answer is, well, eventually, yes. Of course, there's going to be a housing market crash at some point in the future. I mean, it's bound to happen, but is it right around the corner? So, I just want to say this. This was a headline from 2010. The last housing market crash was driven by foreclosures, which I mean that was that was driven by bad banking practices. But essentially, it all boils down to supply and demand. So, when you have this many foreclosures happening and these homes end up being sold, they end up on the markets and it floods the market with supply. Right? In 2010 alone, there were just under 3 million foreclosures. And just for some context, in all of 2024, so all of last year, about 4 million homes were sold in the US. So imagine what 3 million distressed homes hitting the market is going to do to prices. So people don't realize how crazy high that number was for 2010. And I just want to say that's not a housing market. That that's basically like a liquidation events. And of course that plummeted home prices. And 2010, that was just one year. 2008, 2009, and 2011, they were bad in terms of foreclosures as well. And home prices didn't bottom until 2012. But based on everything that we just discussed, foreclosures today are still relatively low. And if there's no massive flood of homes hitting the market, then how are home prices supposed to crash? So, listen, I'm not saying that home prices can't correct, but I mean, a crash is a totally different thing. That's not what the data suggests is right around the corner."

"The housing shortage is expected to persist until the end of the decade. So economists are saying on average that's going to last for another 5 to 7 years. But I just want you to know just like everything else, it's going to depend on your location. For the South, I mean, they're saying that it's going to be shorter. They're expected to eliminate the shortage in about three years due to faster construction. For the West, I it's slower. They're saying six and a half years. The Midwest and Northeast, I I'm just I'm just letting you know. They're saying that they don't see any resolution anytime soon. They're saying that it's going to be an ongoing issue."

"So, do I think that there's going to be a housing market crash in 2026? I don't think so. And I want to remind you of this. You have to remember that the Federal Reserve is most likely going to print trillions of dollars. They're going to turn the money printers back on. And what's that going to do? That's going to cause more inflation. And do you think that home prices and the housing market are going to be immune to this? Personally, I don't think so. Like, I don't print trillions and the housing market crash. Like, it just doesn't m it doesn't add up for me."