New Home Prices DROPPING FAST (Home Builders Preparing for Housing Crash)



Home Builders are SLASHING PRICES on New Homes. Make no mistake: they are preparing for the 2022 Housing Crash.

Newly built Houses in real estate markets like Austin, Nashville, Phoenix, and Tampa are seeing big price drops. As a result of higher Mortgage Rates and a slowing Homebuyer Demand, Home Builders are looking to liquidate inventory before the Housing Crash gets worse.

Cancelled Contract Video from April:

That’s because they know a combination of 1) Record Home Construction to go along with 2) Crashing Buyer Demand means that the 2022 Housing Market doesn’t have long before the Bubble pops.

Wall Street is predicting this as well. The Stock Prices of publicly traded Home Builders such as Lennar, DR Horton, and Pulte Group are down by -40% YTD (compared to market average of -23%). This is a sign that Wall Street Investors are also predicting a Housing Crash.

One trend that is likely to occur is a decline in Housing Starts. Since Home Builders see declining demand, and have nearly 2 Million Homes Under Construction to work through, they will pull fewer permits and start construction on fewer homes.

In my opinion – this will be a good thing for the Housing Market. As fewer Starts will ease the labor and materials shortages that preventing homes from getting finished.

The last thing to monitor is the surge in Cancelled Contracts. According to John Burns Real Estate Consulting, there has been big increase in homebuyers cancelling contracts for homes under construction. Expect this trend to continue as long as Mortgage Rates stay high.


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#HousingCrash #builders #realestate

22 comments

  1. As long as real estate is seen as an "investment" the housing situation will never be solved. It's another cog in the wheel of making money. The only hope you have is to save and wait for the bubble to burst again and then vote to have wherever you bought the house to be rezoned for multifamily, only then can we solve the housing problem

  2. Once again his logic fails him. Okay so if you're telking no one to buy , that means you're telling everyone to rent. Then you claim landlord inability to find tenants will lead to a "crash".

    Uh…no. You can't have it both ways, bud..

  3. They are building them for home investors..the mainstream average joe cant afford them. Why do you think prices where rising so fast. At one point low supply, high demand means rising prices. The feds need legislation.

  4. Well we knew this crash was likely eventually. This is what happens when you inject trillions by simply printing it! I would disagree about rental rates though. Perhaps a small decline but in 08 rental prices held because while everybody lost their homes, they rented instead! I'm not at all worried about my rentals. Glad I sold one before this big drop.

  5. If median home buyers stack up their funds and work on improving their credit in anout two years (third quarter 2024) they should be able to take advantage of decreases in home prices 40% – 60% from peak prices in 2022 depending on location / urban area. Austin, TX. Phoenix, AZ. Miami, FL. for example will be down substantially more. Also, real estate in the southwest will crater as the decades long drought makes living in these areas very tenuous.

  6. Thanks for this channel and videos, I really want to buy a apt in NYC soon, because the rent that I'm paying is too big and not worthy at all, so unless I see a great opportunity, I will wait, although in your videos NYC, doesn't decline too much compared to other cities, but in any case I'm already seen decreases of prices on a lot of APT.

  7. I am trying to cancel my contract the payment went from affordable to now they want to charge more than what I make due to interest rates. Making that property completely out of reach for me. And they making it seem like I can't back down but I haven't officially sign anything besides the down payment on the lot. So know I gotta fight to get my money back.

  8. It’s incredible that builders are allowed to keep available inventory from public view prior to their Q2 earnings call in 2022. They want the homes that have an old purchase agreement to close before they disclose available inventory because they are artificially limiting supply and labeling their future 2023 homes with ridiculous prices not reflecting the market as what’s available. Then once they release their Q2 earnings they (Len and kbh) have flooded the market with quick move-in homes available immediately because they are way up shits creek to produce rev for next quarter. But companies that haven’t had their q2 call yet are still pretending to have no inventory eg taylor morrison. Just watch the inventory change after Q2

  9. well, new homes sales rose in May actually.. can you opine why this happened.. I know i sold 7 new constructions in the month of may out of the 15 I have currently under construction.

  10. Dont believe it… labor costs are up and material costs are still up. We have high demand and low inventory here. Oooo 8% price cut. That;s not a drop of any significance. Stuff that was priced too high will have to come down. Thats not really a drop in that case. Reduction is not a crash. Also factor all the illegals that have come in in this las 2 year stretch.

  11. You’re forgetting to account for the fact that most of the home-buying is coming from major institutions that have capital in hand and are unaffected by rising interest rates. Even with the return of regular-price supplies leading to a potential increase in construction, the demand is so much higher than current supply that this shift in demand that you are referring to would still be insufficient for prices to fall. If anything, homes will continue to go up at their traditional 5% annual increase.

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