Has the New American Housing Crisis Already Arrived? Why House Prices Won't Fall

Has the new American housing crisis already landed? There are 58% more people trying to sell a home in America right now than people trying to buy one, the biggest gap on record. By that measure, it should be the best market buyers have ever had. So home prices should be falling. They're not. Prices have risen for 38 months straight. Mr. Owe breaks down why the housing market stopped working the way it's supposed to, and who's quietly paying the price for it. IN THIS VIDEO - Why more sellers than buyers hasn't pushed prices down - The "rate lock" effect: why millions of homeowners won't sell, even if they want to - Why rising interest rates actually pushed prices UP instead of down - Why Austin's prices are falling while Hartford's are soaring, same country, same rates - Why homebuilders are cutting prices, and hitting a wall anyway - How past government attempts to help buyers backfired and raised prices instead - The quiet role of property tax caps in keeping homes off the market - Why "the bank of mom and dad" now decides who gets to buy a home QUICK ANSWERS Why aren't home prices falling if there are more sellers than buyers? Most existing homeowners are locked into mortgage rates far below today's rates, so they have no financial reason to sell. That keeps homes off the market and props prices up, even with weak buyer demand. Does cutting interest rates or giving buyers more purchasing power lower home prices? Not when supply doesn't increase. Historically, giving buyers more buying power has mostly pushed prices higher, since sellers simply charge more. Who is actually buying homes right now? A growing share of first-time buyers are relying on cash gifts or inheritance from family. Research estimates family help accounts for roughly a quarter of young homeownership today. Is this the same as the 2008 housing crash? No. This is a supply and access crisis, not a crash driven by subprime lending. Prices are high and rising, not collapsing, which is part of what makes it unusual. QUESTION FOR YOU Is the housing market broken where you live too? And which country are you watching from? Tell me in the comments. SOURCES - Redfin, housing market data - US Census Bureau, homeownership and mortgage data - Lincoln Institute of Land Policy, property tax research - Federal Reserve working paper, "Illiquid Homeownership and the Bank of Mom and Dad" Note: this video focuses on the US housing market. Figures referenced are current as of this video's release and may change. This video is for education, not financial or real estate advice. SUBSCRIBE Mr. Owe explains money, debt, and the global economy with simple stickman animation. New videos every day/or two: https://www.youtube.com/@MrOweExplains Educational content only. Not financial, investment, legal, or tax advice. #HousingMarket #RealEstate #AmericanDream