Real Estate Market Crash Begins

The housing gravy train has finally come to an end and has begun derailing.

The market has been teetering and has begun it's downward slide. With population growth stagnated, and the overcorrection of increased construction, there will be an oversupply. Once this realization sets in, the panic selling will begin. The floor might actually be lower than pre-covid given the excess supply, outflow of immigrants, and mortality of the aging population. As people start undercutting each other out of fear being the one stuck holding the bag, price drops will accelerate, eventually overshooting and going below true market value.

Fear and greed drive markets. Greed had a historic run during and after COVID, driving prices above true market value. Now the inevitable yang of fear is starting to drive prices into the ground, and the dust won't settle for the next 3-5 years. They will buoy back closer to actual market value sometime in the mid 2030s, whatever that may be.

For those who bought a house to live in for a decade or more, they will eventually recover. For those who bought in to turn a profit, you waited too long to sell and it's too late to hit the brakes, it's in motion.