A $1.3 Trillion U.S. Housing Market Crash Is Imminent, and Inevitable

The U.S. housing market could lose over a trillion dollars in value this year as the coronavirus pandemic rattles the economy.

Harsh Chauhan@techjunk13

• The U.S. housing market could lose 4% of its value.
• Unemployment claims and layoffs would be a headwind.
• Demand is expected to fall off a cliff thanks to the coronavirus pandemic.

The U.S. housing market is going to be one of the biggest victims of the novel coronavirus pandemic as people lose jobs and the economy comes to a grinding halt. Housing bulls have already started pulling out of the market and it won’t be long before prices start going south.

The latest readings from the S&P CoreLogic Case-Shiller index could be the market’s last hurrah. The economic fallout of the COVID-19 outbreak is about to wreck the market’s momentum and might cause the biggest price crash since the Great Recession.

U.S. Housing Market Had A Great January

According to the Case-Shiller index, home prices in the U.S. rose 3.9% annually in January. The jump outpaced December’s growth of 3.7% and was enough to outpace 2019’s overall home value growth of 3.4%.

The housing market got off to a great start in 2020 as price growth accelerated across key markets. Craig J. Lazzara, the head of Index Investment Strategy at S&P Dow Jones Indices, wrote (via CNBC):…..more here

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