America Facing 2008 Crisis
This is not good.
RH CEO Gary Friedman has sounded the alarm and is now warning the American public that the U.S. housing market is about to get much worse under President Biden. Friedman believes it could be as bad as the 2008 housing crisis.
According to Yahoo Finance, Friedman told analysts, “It’s just a lot of uncertainty right now. But one thing I’m certain of: The housing market is collapsing at a level I haven’t seen since 2008. I haven’t seen this kind of drop since 2008.”
Home sales dropped by 13.6% when compared to a year ago to just $869 million and profits were cut in half.
What’s worse is that national sales of previously owned homes also dropped for the ninth consecutive month this October.
New home construction has also decreased by 4.2% in October to a 1.43 million annualized rate.
“Combined with the fact that RH will be operating against difficult multi-year demand comps through 1H 2023, we see meaningful risk to consensus expectations,” Guggenheim analyst Steven Forbes warned.
