Record-high housing prices in the US could collapse by up to 20 percent over the next year if a recession sparked by Joe Biden’s inflation takes hold, a top Wall Street economist has warned.
Ian Shepherdson, a chief economist at Pantheon Macroeconomics, pointed out that home prices have already declined by about five percent from their peak in May and will continue to tumble.
According to his previous work, there are now 40 percent more single-family homes available than four months ago – and previously occupied home sales have slowed for the seventh month straight.
Prices for homes sank by 0.7 percent in August, but Shepherdson predicts a total decline of up to 20 percent by the middle of 2023.
He warned that the plunging trend in sales ‘has further to go’ and that prices are falling as the US enters the fourth quarter of 2022.
The recession, in effect, will encompass all aspects of the housing industry in the coming months, he claims.