"The Hidden Housing Crash of 2023: What You Need to Know"

The real estate market has entered into crisis mode, and what awaits us in 2023 is a disaster that could be worse than what we saw in 2008. While many remain skeptical, fresh new data is pointing to a troubling future. In this blog post, we will discuss the hidden housing crash of 2023 and what you need to know to prepare for it.

The Case-Shiller Index: A Lagging Indicator

The first thing you need to know is that the Case-Shiller index is not capturing what is happening on the ground right now. The Case-Shiller index is infamous for being a lagging indicator, and while home prices could be collapsing, the change wouldn't look as severe on the Case-Shiller, especially in that initial phase where we see the first signs of a downtrend.

Real-Time Data: A More Accurate Picture of the Housing Market

To get a better understanding of what's really happening in the real estate market, we need to look at other data sets such as Redfin. Redfin is mostly a real estate listing platform, and they have some of the largest real estate data sets in the world. Not only are their numbers accurate, but they're also fast. Redfin can look at listings in real-time and figure out averages without digging through county records, which are often delayed and lag behind the prices we see listed on websites like Zillow and other prop tech companies.

The Divergence: Redfin vs. Case-Shiller

Looking at the Redfin report, prices have already fallen 12.6 percent from their peak in May of 2022, while the Case-Shiller index has only shown a tiny 2.5 percent decrease from their peak in June. This means that the Case-Shiller index is not keeping up with how quickly this crash is moving, and the truth is hidden in plain sight.

Prominent Real Estate CEOs are Sounding the Alarm Bells

It's not just finance YouTubers who are talking about the impending housing crash. Prominent CEOs in the real estate industry are also sounding the alarm bells. CoStar CEO Andy Florence recently told Fortune Magazine that "people who think a 10 percent drop in home prices is what's coming are dreaming. A 20 percent dip is more likely."

How to prepare for the housing crash of 2023?

What can you do to prepare for the housing crash of 2023? First, it's important to recognize that it's not just a temporary cooling of the market, but a full-blown crisis. If you're in the market to buy a home, you may want to consider waiting until the market stabilizes or looking for distressed properties that you can purchase at a lower price.

If you're a homeowner, it's important to assess your financial situation and see if you're at risk of losing your home in a foreclosure. You may want to consider refinancing your mortgage or seeking assistance from your lender if you're struggling to make payments.

Conclusion

The hidden housing crash of 2023 is not just a prediction, it's a reality that's already underway. By understanding the data and listening to the experts in the industry, you can prepare yourself for what's to come. Whether you're a potential homebuyer or a homeowner, it's important to take action now to protect yourself from the potential fallout of this crisis. For more information on the housing market and other financial news, visit our website.