The housing bubble that burst during the Great Recession was enormous, but it was nothing compared to what we are facing now.  Two decades ago, the average price of a home in the United States was about $140,000.  Today, the average price of a home in the United States is above $500,000.  We have literally never seen anything even close to a housing bubble of this magnitude.  Unfortunately, what comes up must eventually come down.

Just like we witnessed during the Great Recession, home sales have started to crash.

In January, sales of previously owned homes were 8.4 percent lower than they were in December…

Sales of previously owned homes in January dropped a much wider-than-expected 8.4% from December to a seasonally adjusted, annualized rate of 3.91 million, according to the NAR. Sales were 4.4% lower than January 2025. That is the slowest pace since December 2023 and the biggest monthly drop since February 2022.