The US housing market is heading for a catastrophic crisis, according to a financial expert who is sounding the alarm about an impending housing apocalypse.
Chris Vermeulen, founder of The Technical Traders, has issued a stark warning about the future of the US housing market.
Vermeulen believes both residential and commercial properties are on the verge of a sharp price decline that could see values fall by a whopping 30 percent in just three years.
“People are going to have to start selling their homes,” Vermeulen said. Business Insider This week, what we’re starting to see is people realizing that they can’t pay their mortgages or that they need to downgrade their credit rating.
The US housing market is heading for a catastrophic crisis, according to a financial expert who is sounding the alarm about an impending housing apocalypse
“A lot of people are struggling financially and this is just the tip of the iceberg. Let’s wait another two or three years, because then the real estate market will suffer more.”
The warning comes at a time when Americans are already showing signs of financial stress.
Retail sales have been unexpectedly weak over the past two months, for example, rising just 0.1 percent in May.
Vermeulen said this could trigger a domino effect of corporate profit losses, leading to more layoffs and reduced hours for workers.
“People are starting to lose their jobs as unemployment rises. People have spent all their savings and inflation is incredibly high,” he said. “Eventually, people are not going to be able to pay their mortgages.”
According to consultancy Challenger, Gray & Christmas, job cuts have already soared by 136 percent in January.
The expert predicts that unemployment could rise to a staggering 5 to 6 percent, leaving many Americans unable to keep up with their mortgage payments.
But it’s not just homeowners who should be worried.
The commercial real estate sector is facing a staggering $900 billion debt crisis, with foreclosures already up 117 percent in March.
Vermeulen also expects property prices to plummet by around 30 percent in both the residential and commercial markets.
He warns that recovery could take a decade.
Chris Vermeulen has issued a stark warning about the future of the US housing market. He believes both residential and commercial properties are on the verge of a steep price correction that could see values fall by a whopping 30 per cent in just three years.
“Real estate prices have doubled or tripled in the last two years. It’s pretty out of control. And usually when an asset goes up so much and so fast, it tends to recover and correct,” Vermeulen said.
“It will be an incredible opportunity for people who can identify with the background.”
Vermeulen’s forecast stands out as one of the gloomiest among recent property commentators, however, not everyone shares this negative view.
The National Association of Realtors has argued that low housing inventory could keep prices stable in the coming years.