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IPFS News Link • Housing

The end of the pandemic housing bubble! Analyst once dubbed 'the Oracle of Wall Street'...

• https://www.dailymail.co, By HELENA KELLY

America's real estate landscape is in the midst of a major upheaval that will make homes more affordable to first-time buyers, claims a former Oppenheimer analyst.

Meredith Whitney earnt the nickname the 'Oracle of Wall Street' after accurately predicting the 2008 financial crisis. 

Now she claims house prices are on the brink of decline after the pandemic inspired a real estate boom that saw the average property shoot up over $100,000 in value in less than four years.

However, she said the trend will be geo-specific with the likes of New York, New Jersey and Ohio worst-affected. By comparison, homes in TexasTennessee and Utah are among the states set to remain strong.

The shift will be driven by a surge in Baby Boomers downsizing into smaller properties - freeing up inventory and bringing costs down for first-time buyers, Whitney said. 

She told DailyMail.com: 'Around 90 percent of housing stock is owned by over 40s while 74 percent is by those over 50.

'It makes logical sense that lots of these owners will start to downsize in the next decade. That's almost 35 million homes - it's a huge number to go through the system.

'My advice to homeowners is: if you want to sell, you're better off doing it sooner than later.'

During the pandemic the median US house price ballooned from $303,465 in March 2020 to $402,045 by December 2023, Redfin figures show.


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