A recent Bloomberg article said that from Sydney to Stockholm to Seattle, house prices are falling. Examples include Australia and Canada, which face double-digit house-price declines. In New Zealand and Sweden, house prices could fall as much as 20% and 15%, respectively. Housing Wire said that according to the Federal Reserve Bank of New York, house-price growth in the U.S. is projected to decline “sharply” to the lowest level since July 2020.
Positively trending social mood fueled optimism, which drove house prices up. The September 2022 issue of The Elliott Wave Financial Forecast said the final peak in optimistic social mood found many ways “to make the public and institutional commitment to housing at least as gargantuan as it was in 2007.”
But in the March 2022 issue, the Financial Forecast warned that a trend reversal in U.S. stock prices combined with a five-wave advance in new house prices strongly suggested that the next important move for home prices would be a decline.
To learn more about the relationship between social mood and real estate prices, read “If Your Nest Egg Breaks, Will You Still Want the Nest?”
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.