Is the REAL ESTATE Crysis coming back?

By Domifidsch | Crypto Scandals | 20 Apr 2023

Is the REAL ESTATE Crysis coming back?

The house market in America and Europe is starting to heat up and while most of the states and big company's are telling us to stay calm I think there is a lot to be concerned about at the moment. Here are my reasons:


1. The FED is still not giving any signs of starting to lower interest rates any time soon despite the occuring recession of two of the most important economy's in the world. This means that house owners who took a credit for their house with flexible interest rates are now about to face extremely high rates. Sadly the number of people without flexible interest rates became lower and lower during the last years.


2. Many banks and institutions are facing billions in unrealised losses which they would have to realize, if too many people decide to get out of their contracts with their banks and to invest their money into Alternative Investments.


3. This pressure could become even higher if too many people are getting into financial troubles because of their outstanding and more expensive loans because banks would be forced to realize their losses also in the case of running out of liquidity.


4. The amount of money that banks hold as a security to keep on providing their service is as low as ever!
Some banks in Europe operate with less then 4 percent of owned capital.



All these things were also given about 15 years ago during the last big banking and housing Crysis and due to the lag of regulations after the last big crash, it's very very likely to happen again.


Some say the bubble this time is not as big as last time, some say the bubble is bigger then ever and could cause a huge domino effect.
Starting from small banks like we already saw with the SVB collapse it could become a bigger and bigger problem also and especially for the big banks in the future.
The housing market could be one of the most effected part of our economy as a result.

Thanks for reading and please let me know:
What is your outlook on the housing market worldwide, but also especially on your continent.

Stay healthy and have a good week all of you :)


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