Core Insights - Meredith Whitney, known for predicting the 2008 financial crisis, warns of emerging issues in the U.S. housing market, forecasting that existing home sales in 2025 will be the slowest in over 25 years [1][2] Demographic Shifts - Over 54% of homes in the U.S. are owned by seniors, which is 10% more than in 2008, with 78% of seniors preferring to stay in their current homes rather than downsizing [2][3] Financial Implications for Homeowners - The potential tax implications from selling homes may deter baby boomers from selling, as the IRS allows a deduction of up to $250,000 (or $500,000 for joint filers) from capital gains, a threshold set in 1997 that is less beneficial today [4] Market Conditions - The housing market is described as "part frozen," with many homeowners reluctant to sell due to being locked into lower mortgage rates from the pandemic, which were between 0% and 0.25% [5][6] - The typical U.S. household earns approximately 46% less than the recommended income to afford a median home price of $439,950, which dropped to $415,000 in December, indicating only slight improvement in affordability [6]