Maps Of Mayhem: Is The Housing Collapse Here?

6 charts that show that, with rates still rising, housing may have already peaked.

The setup has been perfect for a housing collapse - with prices skyrocketing over the last 3 years and real estate witnessing a boom the likes of which it hasn’t ever seen before.

For the two years the economy was closed all we heard were stories about homes selling far over asking price, buyers waiving inspections and demand far outweighing supply. Here’s where prices have run up the most over the last few years:

Now as American consumers brace for the recession we may already be in the midst of, it looks as though the highs may be in and the tide could be ready to turn in housing - one of the major indicators of a serious economic slowdown.

In fact, I would argue that housing has to start falling apart, providing mortgage rates continue to rise and, of course, all contingent on whether or not Powell and the Fed decide to actively keep their foot on the gas. Last week’s Jackson Hole speech by Jerome Powell seems to indicate the Fed has no plans of pivoting anytime soon.

This combined with the fact that we no longer have the “Covid rush” out of cities and into the suburbs, and there’s no more “free” government stimulus checks being handed out, tells me that housing could be ready for a correction.

Here’s 6 charts that, in my opinion, show the housing market topping of late: