Summary

• I believe the U.S. housing market is at the peak of its largest bubble ever, with significant declines likely over the next several years.
• Rising mortgage rates, surging inventory, increased foreclosures, and longer days on the market signal a shift from boom to bust in real estate.
• Housing-related stocks like WHR, HD, SHW, RH, and LEN have recently hit 52-week lows, reflecting market anticipation of further housing weakness.
• AI-driven job losses and persistent inflation could further pressure home prices, with only a rapid decline in rates offering potential relief.

After many years of rising home prices, the Great Financial Crisis or "GFC" and the plunge in home prices seems to be a distant memory for most people. I am surprised, because most people that I have had conversations with

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of WHR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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