Question

What is the current state of the housing market in the US and in Sacramento?

Answer 1

People are fearful of a real estate market recession after the corona virus pandemic. The demand has substantially gone down to the extent of 60% and this is further expected to go down, if the condition is not going to improve.

there are several signs of an impending house market recession which can be visible as the asset price bubble has burst, and it can be reflected through an inverted yield curve.

There are a large number of unregulated mortgage brokers and if the house market is going to soften, these brokers are gonna go bust.

The fear of crisis is real, because the housing market has again allowed the use of derivatives which were the major triggering factor for 2008 financial crisis, and there is a change in the tax code by the Congress as well so people are not not looking much for mortgage deduction.

These factors are adding to the decrease in the house prices all over the United State, and this is gonna go lower if the situation does not improve because the demand is struggling and even after the regulators are cutting interest rates to stimulate the demand, it has not been reflected in the price yet .