Home prices just turned negative for first time in 2 years, stirring fears of 2008-style crash. Shockproof your wealth

Core Insights - The U.S. housing market is showing signs of a downturn, with analysts predicting significant price corrections that could exceed 50% in certain areas, potentially worse than the 2008 crisis [1][2][3] - Recent data indicates that 53% of U.S. homes have lost value over the past year, with an average decline of 9.7%, marking the highest share of depreciating homes since 2012 [2][5] - The combination of rising mortgage rates, affordability issues, and increased inventory is contributing to a national decline in home prices [3][4] Housing Market Analysis - Melody Wright warns that the current conditions, while different from 2008, could still lead to a severe downturn in the housing market [2] - Parcl Labs reports that U.S. home prices have slipped below year-ago levels, with the last negative trend occurring in mid-2023 due to rapid Federal Reserve rate hikes [5] - The average home price has decreased by 1.4% over the past three months, reflecting a broader trend of declining values [4] Economic Factors - The sharp increase in mortgage rates in 2022 and 2023 has created an affordability shock, leading to decreased buyer demand and lower sales volumes [3] - Analysts suggest that inflated home prices from the pandemic era, combined with higher mortgage rates, are softening demand and pushing prices downward [4] Gold Market Insights - Gold has seen a significant price increase of over 60% in the past 12 months, reaffirming its status as a safe haven during economic uncertainty [6] - Ray Dalio emphasizes the importance of including gold in investment portfolios as a diversifier during challenging economic times [7][8]