Elon Musk: After Stocks and Crypto, Housing Market Is Next To Tumble

This post was originally published on this site

Tesla Chief Executive Elon Musk weighed in on the market selloff, retweeting a meme showing the grim reaper vanquishing stocks and cryptocurrencies. He then knocks on the real-estate market’s door.

Real estate is much slower to react to a rising interest rates or a slowing economy because it takes a lot longer to buy or sell a house than it does to offload dogecoin or Netflix shares.

As The Journal’s Orla McCaffrey writes today, Americans have never been so house rich, thanks to soaring property prices. Total home equity increased 20% in the first quarter to a record $27.8 trillion. That data is lagging though. Interest rates have surged and the mortgage business has slowed dramatically. Mr. Musk isn’t the only one to predict the housing market has serious pain in store.