Almost 80% of Americans think we will soon be facing a housing crash, according to a new poll by Consumer affairs…(CA)
- 78% of Americans think we’ll soon face a housing market crash
- 85% of Americans think the crash will happen either this year or next.
Ever since the housing crash of 2008, Americans have been waiting for the next housing crash to happen. The earliest article I can find is from John Carney at CNBC who argued the housing market was starting to form a bubble in 2013! (I’m not kidding) So for almost ten years pundits have been calling the top of the housing market. However, now that home prices have skyrocketed 30% in two years (and even more so in local markets) the idea that a housing bubble is about to pop is growing in popularity. And not only are most Americans expecting a crash they are ready to pounce when it does happen…
- 75% of respondents said they have plans to buy a home if the market crashes and, on average, they have $29,504 saved to help them buy a home.
- Zoomers, aka Generation Z, were the most likely to want a housing crash at 84%.
With home affordability at the worst point since 1989, it’s not hard to see why most Americans think a crash is imminent. There is some good news in this report. When given the choice between a crash or a correction, 27% of respondents did say they would rather see a housing correction (80%) than a crash (63%). I continue to stand by my prediction that a housing correction of about 5% nationally is definitely in the cards. However, with so many Americans sitting on record equity with record low-interest rates, the idea that a housing crash is imminent just doesn’t make a lot of sense.