Is the property bubble FINALLY about to burst? House prices are on verge of plunging by up to 20%, economist says, thanks to soaring prices that have ‘cratered demand’, rising mortgage rates and a glut of supply

House prices in the US could be on the verge of dropping by up to 20 per cent because of cratering demand caused by rising mortgage rates, a leading economist warned.

Ian Shepherdson, a chief economist at Pantheon Macroeconomics, pointed out in a note to investors on Tuesday that there are now 40 percent more single-family homes available than four months ago.

House prices in the US could be on the verge of dropping by up to 20 per cent because of cratering demand caused by rising mortgage rates, a leading economist warned.

Ian Shepherdson, a chief economist at Pantheon Macroeconomics, pointed out in a note to investors on Tuesday that there are now 40 percent more single-family homes available than four months ago.

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