🚨 US Housing Just Posted Its Worst Numbers Since 2017. The Wealth Effect Is Reversing.
Median US home listing prices dropped 2.4% year-over-year in May to $429,500 — the steepest annual decline since Realtor.com began tracking in 2017. On a per-square-foot basis, prices fell 2.5% — also a record decline.
This marks seven consecutive months of annual price declines — across all four major US regions simultaneously.
The city-level carnage is severe:
Memphis down 13%. Buffalo down 11.6%. Austin down 9.5%. Los Angeles down 7.9%. San Diego down 5.6%.
Meanwhile mortgage rates climbed from 6.30% to 6.53% during May — driven directly by Iran war inflation hitting 4.2% CPI — reversing all the relief seen in April and killing spring buying momentum.
Here's the macro chain nobody is connecting to crypto:
American household wealth is 30% real estate. With 46.9% more home sellers than buyers nationally right now and prices declining in 35 of 50 major metros simultaneously — the wealth effect is reversing at scale.
When Americans feel poorer from their homes, they reduce risk exposure across ALL asset classes. Stocks. Crypto. Speculative positions. Everything gets trimmed.
This correction remains orderly for now. But inflation at 4.2%, mortgage rates at 6.53%, and geopolitical uncertainty from the Iran war create exactly the conditions where orderly corrections become disorderly ones.
The Social Security trust fund depletes in 2032. Home values are falling.
#IranNuclearDeal #USIsraelStrikeIran #IranPeaceDeal $EVAA
