Underreported inventory, new-build gaps, and demographics

A housing price correction “worse than 2008”? That’s the headline of Melody Wright’s widely-cited Newsweek interview, but today, she’s giving her full, honest take on what she really meant.

Melody got into the mortgage industry in 2006, riding the subprime wave up until it popped two years later. The lender she worked for went bankrupt in 2012, as Melody witnessed the fallout firsthand. From there, her new job became analyzing housing data to ensure this never happened again. And looking at the data—delinquencies rising, inventory spiking, a quiet “credit crisis” rarely talked about—Melody believes we could be on the verge of another serious correction.

Today, we’re getting her detailed opinion on whether we should expect a housing crash, correction, or a slow, stable return to affordability. We talk at length about the rising delinquency rates (much of which is not public) signaling serious trouble for the housing market and borrowers, and the “credit crisis” brewing behind the scenes that could upend the market (especially for investors).

This is what Melody Wright really thinks will happen next.

In This Episode We Cover

Melody’s real opinion on the “Worse Than 2008” claim 

Why Melody believes home prices could correct up to 50% in some markets

The “credit crisis” brewing that uncovers a very weak homebuyer pool

Delayed delinquency? Why more borrowers are beginning to inch closer to losing their homes

The white-collar recession that will have serious effects on pricey real estate markets

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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Join us at the BiggerPockets Conference October 2-4 in Orlando. Buy tickets

Sign Up for the On the Market Newsletter

Find Investor-Friendly Lenders

Dave's BiggerPockets Profile

On the Market 407 - The White-Collar Recession Means More for Real Estate Than You Think

Newsweek Price Correction ‘Worse Than 2008’ Coming To US Housing Market—Analyst

Reuters JPMorgan marks down value of loan portfolios of some private credit groups, source says

Realtor Housing Market Tilts in Favor of Buyers as Active Inventory Climbs

Grab Dave’s Book, "Real Estate by the Numbers"

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