I will tell you why.
Everything above that line should have never happened. When Trump put in eviction and foreclosure moratoriums, this made it so prices could not fall. Basically eliminating the possibility of negative equity.
When people are in negative equity, they can not refinance their houses. So.... basically, prices could only go up. This of course helped people not lose their houses due to the pandemic. However, in a strange psychology I don't understand yet, everyone went nihilist and spent all the money the government gave them on houses and boats and all sorts of stuff. Now we all get to pay and see if the price was worth it. I'm going to give you a hint. The answer is always no when the government steps on the scale as they did in 2020.
The thing about nihilism, is eventually you have to pay for all that stuff or repeat the cycle. And from what I have learned about people... they can never keep their shit together. Hell.. I actually had the bank try to get me refinance by telling me, you know - prices have gone up a lot. Don't you want to pull some money out before that goes away? I will link the post later.
My own direct neighbor paid 400K OVER ASKING! That NEVER happened in the housing crisis. That would have made the 2008 housing crisis blush with envy.
Prices need to at least fall to that red line. I'm assuming the market always overcorrects. Negative equity is going to be rampant. And we will get to see if those people take the pain like I did in the housing crisis, or default.
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