Graham Stephan: Housing crash will not happen

Said on Dec 12, 2022, at 11:37 in the video.

What was said
Graham Stephan

@grahamstephan

“I don't think this points to a cataclysmic crash to any degree.”
Watch at 11:37It Started: Housing Prices Are Collapsing
PredictionHousing crashwill not happenChecked at fixed windows, from 30 days to 5 years
What happenedafter 1 year
Correct

Reading when said

294.68

Dec 12, 2022

Reading at close

310.67

Dec 12, 2023

Change

+15.99

The house price index (CSUSHPINSA, first releases) stood at 294.7 in December 2022, the figure at the start of the window. Between then and December 2023, its deepest fall from a running peak was −0.7%, in December 2023. A fall of at least 10.0% counts as a housing crash, and at least 5.0% as partial. The call was that no housing crash would come.

30 days

Correct

90 days

Correct

180 days

Correct

1 year

Correct

The window it was checked over

This series is not charted here until its publisher's terms for reusing it are confirmed. Each verdict still cites the figures it was judged on.

S&P Cotality Case-Shiller U.S. National Home Price Index: S&P Dow Jones Indices via FRED

Result at every window

All windows are shown, so none is picked
Result at every window
WindowResultAt the startAt the endChangeBenchmark
30 daysR-CRASH v4Correct294.68292.71Jan 11, 2023−1.97—
90 daysR-CRASH v4Correct294.68297.08Mar 12, 2023+2.4—
180 daysR-CRASH v4Correct294.68308.25Jun 10, 2023+13.58—
1 yearR-CRASH v4Correct294.68310.67Dec 12, 2023+15.99—
3 yearsR-CRASH v4Correct294.68327.45Dec 11, 2025+32.78—
5 yearsR-CRASH v4Pending——Dec 11, 2027——
Why: 30 days

The house price index (CSUSHPINSA, first releases) stood at 294.7 in December 2022, the figure at the start of the window. Between then and January 2023, its deepest fall from a running peak was −0.7%, in January 2023. A fall of at least 10.0% counts as a housing crash, and at least 5.0% as partial. The call was that no housing crash would come.

Why: 90 days

The house price index (CSUSHPINSA, first releases) stood at 294.7 in December 2022, the figure at the start of the window. Between then and March 2023, its deepest fall from a running peak was −0.7%, in January 2023. A fall of at least 10.0% counts as a housing crash, and at least 5.0% as partial. The call was that no housing crash would come.

Why: 180 days

The house price index (CSUSHPINSA, first releases) stood at 294.7 in December 2022, the figure at the start of the window. Between then and June 2023, its deepest fall from a running peak was −0.7%, in January 2023. A fall of at least 10.0% counts as a housing crash, and at least 5.0% as partial. The call was that no housing crash would come.

Why: 1 year

The house price index (CSUSHPINSA, first releases) stood at 294.7 in December 2022, the figure at the start of the window. Between then and December 2023, its deepest fall from a running peak was −0.7%, in December 2023. A fall of at least 10.0% counts as a housing crash, and at least 5.0% as partial. The call was that no housing crash would come.

Why: 3 years

The house price index (CSUSHPINSA, first releases) stood at 294.7 in December 2022, the figure at the start of the window. Between then and December 2025, its deepest fall from a running peak was −1.2%, in December 2025. A fall of at least 10.0% counts as a housing crash, and at least 5.0% as partial. The call was that no housing crash would come.

Why: 5 years

Not yet resolved. The window closes Dec 11, 2027.

What was said around it

picture, it's reported that fewer than 1% of homes mortgaged in 2021 are underwater with only 3% having limited equity. That suggests that even if the market declines further, we're not going to enter a market where prices drop 35% across the board like we saw in 2008. Now, personally, as someone who's worked full-time in the real estate market for now 14 years, I would not be surprised if home prices did end up dropping between 5 to 10%. I wouldn't be surprised if highly euphoric markets saw a drop of 20 to 25% only because they've gone up so much so quickly. But, I don't think this points to a cataclysmic crash to any degree. And if anything happens, I think it's going to be a lot more mild. The way I see it, I think this is going to lead to some pretty good buying opportunities throughout the next year. And I'm keeping some cash on the sidelines to buy a commercial office or warehouse space whenever a good deal comes up, if one comes up. I'm hoping I could find one, but we'll see. For everybody else though, if you're a buyer, just be patient and shop around your mortgage rates because the market is moving in your favor and I would use that to your advantage. And for sellers, if you're

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