The Housing Market is Stalling Out

So, as I predicted earlier this year, housing prices couldn’t keep climbing forever, and now we’re seeing what they’re calling a “correction.” But let me tell you, I think this is the beginning of not just a correction, but another housing market collapse. Here’s why I’m so confident this isn’t just a little hiccup.

Over the last few years, housing and rental prices have skyrocketed. Some people made a ton of money selling their homes, so good for them. But on the flip side, people were paying top dollar for homes in the Tampa area that hadn’t been updated in thirty years or needed major repairs. In other words, dumps were selling for two to three times what they were worth.

Coming from a small farming community in Michigan, where prices have also increased, it was a huge adjustment for me to consider paying Florida prices. When I moved to Orlando in 2020, my rent jumped from $1,200 to $1,800 a month. I refused to re-sign the lease and packed up for Tampa Bay. If I was going to pay those prices, I’d rather look at water than Mickey Mouse and Disney.

The cost of living in Florida may not be the highest in the country, but it’s still nearly impossible for the average family to survive unless they work two or three jobs. Over the next couple of years, you’re going to see an increase in foreclosures, homelessness, and more people at food banks. Our economy is in a downturn, and housing prices will continue to decline until they stabilize. The high life is over, and if this isn’t another complete collapse, I’ll be surprised. So buckle up, everyone, because we’re all going to feel the pain.

The silver lining? You’ll see a correction in rents and selling prices. But they need to drop a lot before most Americans can truly afford to buy a home. If your lender offers zero-percent-down programs, I’d highly recommend waiting until you have a decent down payment. Otherwise, you might end up underwater on your mortgage with no easy way out. Don’t get suckered in by a lender just looking to make a fat commission. Do your own research and understand what you can truly afford. It might be a one-room shack, but that could be better than a huge mortgage you can’t ever pay.

Be careful out there; the world is getting rough. And as always, try to stay blessed.