Elon Musk Predicts “Real Estate Meltdown”: Says Home Values will Crash

Elon Musk predicted on Twitter that home values would “crash” as a result of the fallout of commercial real estate. This housing crash prediction was disputed by the CEO of Redfin who stated that the increase in home values was because less people were using office space. Elon tweeted that home values would be next to fall.

Home values in the US were up .7% from March 2022 to March 2023 and interest rates have dropped the last few days. There have been calls for a housing crash for at least 4 years but so far it hasn’t happened and doesn’t look like its actually going to. Over 40% of all homes are owned without mortgages and most people have sub 4% loans with extremely low payments.

The initial tweet came as a reply from David Sacks who stated that commercial real estate (offices) are in trouble because $500B of loans had to be refinanced in the next year. Those won’t be able to be refinanced and if they aren’t there will be foreclosures and likely office spaces would crash substantially in 2024 and 2025. There is little evidence that residential real estate will crash in 2023, 2024 or any year after that.

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