The housing market is in a dangerous spot, warns Reventure CEO Nick Gerli. According to him, the current housing market bubble is the biggest we’ve ever seen. It’s even larger than the one in 2006. The problem is that housing prices are too high compared to average incomes, making homes less affordable. Gerli suggests that prices will have to drop, or inflation will keep rising, which could cause even more problems.

For example, homes are now priced at 4.5 times the average income, which has only happened twice before – in 2006 and the early 1950s. Back in the 1950s, it took a decade of flat housing prices and growing incomes to fix things, but Gerli doesn’t see that happening this time.

Some states, like Florida, Tennessee, and Texas, are experiencing the biggest bubbles because housing prices there have shot up much faster than local incomes. On the flip side, places like New York and Illinois are less affected, as more people can afford homes, leading to tighter inventory.

The key to solving this might be increasing the number of homes for sale and slowing down rising mortgage rates. Experts, however, believe it’s best to lower rates gradually to give buyers a better chance. For now, though, many Americans are still struggling to find affordable housing solutions in an increasingly expensive market.

To see the complete article, please see the link below:

Housing Market In ‘Biggest Bubble Of All Time,’ Warns Reventure CEO: ‘This Situation Is Not Sustainable’

We are here to help! Contact us today!