NOBODY IS READY FOR THIS

4 months ago
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Are we heading towards a real estate crash? 🤔 The more research I do, the more convinced I am that we might be on the verge of one. While there are arguments on both sides, the evidence pointing towards a crash is mounting. 📉

Before diving into the details, I'd love to hear your thoughts! Do you think we're heading for a crash or a boom? Let me know in the comments by typing "crash" if you think we're crashing or "boom" if you think the market will boom. 📣

Real estate is inherently cyclical. Not only does it follow seasonal patterns—with fewer sales in winter and more in spring and summer—but it also follows a longer cycle of 16 years of appreciation followed by a 4-year period of price drops. 🏡🔄 According to Fred Harrison, our next crash cycle could begin in 2026. But why 2026? While I don't have all the answers, it does seem plausible given current trends. 📅

Interest rates play a significant role in this cycle. Currently, we're seeing high rates, around 7%, which we haven't seen in over two decades. 📈 These high rates are a major factor in slowing down the real estate market. Unless we see significant rate cuts, which isn't expected until possibly September or November, the market will continue to feel the pressure. 💸

Another key factor is inventory. As more homes hit the market and if they don't sell quickly, prices will have to come down. 🏘️ In Florida, where I am, inventory is definitely rising. Although the pace has slowed, it's still going up, contributing to the potential for price drops. 🌴

Consumer sentiment is also a crucial indicator. Right now, people are cautious and waiting to see what happens next. The excitement that might come with a new president in 2025 could temporarily boost the market, but it's unlikely to change the long-term trends. 🗳️

What's your take on all this? Share your thoughts in the comments below and don't forget to like and subscribe for more real estate insights! 👍

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