Moody’s Warns Of Housing Market ‘Red Flare’ As Sales Plunge, Builders Back Off

The U.S. housing market is showing signs of a significant slowdown, with a sharp decline in sales and a potential threat to the economy, according to Moody’s.

What Happened: The housing market, which had been resilient for several years, is now displaying concerning indicators such as a surge in listings, a decrease in home sales, and a halt in price growth, reported The Street on Tuesday.

Moody’s chief economist,Mark Zandi, has issued a stark warning, stating that the “red flare” is signaling a high alert for the housing market.

He highlighted that home sales are already at a low point, and even builders, who have been propping up the market, are now looking to step back. Additionally, the cost of lowering mortgage rates has become prohibitive, leading to builderswalking away from land deals,a significant warning sign.

Zandi believes the housing market’s weakness is poised to deepen. With mortgage rates stuck near 7%, he warned that a sharp drop in home prices, new construction, and project completions could follow. What was once a key engine of economic growth is now becoming a major drag on the broader economy.

After years of pandemic-driven demand and tight inventory, the U.S. housing market is now showing clear signs of strain. Supply remains below healthy levels, while active listings jumped 29% in June and homes are sitting on the market longer. Major cities like Austin and Denver have seen listings surge over 50% from 2019.

Sales are falling fast — new single-family home sales dropped 13.7% in May, and construction is slowing amid rising costs. Builder confidence has hit its lowest point since early 2023, with land deals paused and project delays mounting.

Prices are beginning to soften as well. The Case-Shiller index has edged down since February, with annual growth shrinking to just 2%, the weakest since 2012. Affordability remains a major hurdle, with first-time buyers now needing over $126,000 a year to afford a median-priced home.

Why It Matters: This development comes on the heels of a series of warnings and challenges in the U.S. housing market. In April, Zillow reported a disparity between the number of sellers and potential buyers, driven by affordability concerns.

This led to a rise in inventory and possible price reductions.

In June, Economist Craig Shapiro called for a national housing policy overhaul, arguing that the housing market had become an “over-subsidized, under-scrutinized asset class in America.”

In February, mortgage rates dropped to their lowest level since December 2024, with the average 30-year fixed rate falling to 6.88%. Despite the decline, demand for home loans remained weak.

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70 thoughts on “Moody’s Warns Of Housing Market ‘Red Flare’ As Sales Plunge, Builders Back Off

    1. I only do business with Caucasian people now. I don’t trust the schvartzes and other non Caucasians. They have been trained and bred to hate the white man.

      I’ve been a landlord and property manager in PG County for 25 years. PG County is only about 10% white now. The whites have left. Ever since the George Floyd riots, blacks have become much more difficult to deal with. My solution was to extract myself from their economy. And withdrew my assets and placed them in an area of like kind people.

      Life is much easier now… And profitable.

  1. https://www.youtube.com/live/O1jOi7Wce8I?si=pbnIOzMQf4VgVfoY I stumbled upon this recently where President Trump hosts the UK prime Minister in the President Trump’s property in Scotland. The UK guy has a hard time articulating that and almost forgets who is hosting whom. I thought symbolic perhaps, Manassah over Ephraim’s current disaster. I know they are nothing like what they were once before but it is symbolic I think.

    1. Good observation. It shows that Ephraim and Manasseh are in captivity. Just like when it was taken over by the Assyrians. Only now are the Ephraimites and Manassehites figuring this out. After the northern kingdom was taken into captivity, the Assyrians flooded the former region with a bunch of mongrels. Jesus referred to these people as dogs.

      Today’s Universal Church whore would think this is hate speech. After all, the Universal Jew scribe created whore is communist. It says everyone is the same.

      So, let your Caucasian pastors give away their daughters to black African men.

  2. Hey Stone, I was just wondering if you or your any of your readers are using AI at all? I have a little for my own amusement but that’s it and not on the regular. Just wondering what the consensus is.

    1. I am terrible with technology. I barely understand how to maintain this site. The only “AI” I use is with Google searches.

      I have noted many inconsistent and incorrect answers, but it is getting more accurate as time goes on.

      With this said, Google’s responses are definitely what I would consider kosher.

      1. Try doing the same search on Google Gemini or X grok, you will see. It is like if it was a person. I remember back when Musk said originally summoning the demon. It definitely seems that way. Accurate info. After all, those “guys” introduced all of the advanced earthly knowledge according to book of Enoch right?

        Give it a try and see what you think.

    2. I use the Google AI for searches. It comes out pretty good and accurate and provides good references. I also use Google AI for tax research questions and it is actually very helpful at pointing to good references and articles. I think AI could be useful for research, however, you still have to verify it’s answer by reading references.

    3. We are evaluating several AI agents to use in our business. We get orders in several formats (text, phone message, email, web order and even fax) and will be able to “scrape” the relevant information for automatic input and scheduling. Also useful for compliance issues like traceability and accounting and other busywork. There is no currently available or affordable canned solution to take care of these things for smaller businesses without hiring someone to keep track of it – something I am not interested in paying for and supervising.

      AI should be useful for medical and legal issues, but I think those rackets will remain in force.

      1. AI will probably eliminate the paralegal jobs and the lower end medical jobs such as billing and patient processing. I don’t think it will eliminate lawyers and doctors but will eliminate their human help.

    4. AI is become ubiquitous. It and digital currency will become indispensable to function in this world. I suggest people take the time to do a deep dive into both to determine if you really want to become entangled with this technology.

      This world is rapidly moving towards the beast system and both AI and stable coin/digital currency are a major stepping stone to it. We will all have to decide when to step away,

      1. We have no choice in the matter. We’re all part of it, the Babylonian whore. Best thing to do is to figure out a way to make our own money. Those who can make their own money will be the last ones standing before the Universal whore New World Order rolls out the guillotines. Those who preach and discuss the written word the way we do will be enemy #1. Those belonging to the universal judeo-christian churches will have no problem acclimating.

        1. I am dumbfounded by the amount of people I talk especially the whites how financially illiterate they are. Its amazing what happened to these people. No concept of how money works and how to use it properly. Its a tool to use .

          1. That’s because both public and private schools no longer teach home economics. They used to teach home economics 50 years ago. Home economics classes used to teach things like how to manage the money you earn, shopping wisely, and how to do things around the house.
            Grade schools, both public and private, now just teach you to be an obedient slave by forcing you into a mold. Home economics courses go against the current grain as it teaches you to be financially independent.

            If I was a parent today, I would homeschool my kids. I looked at reviews of prominent private schools and I noticed a lot more complaints about most of those private schools in the last four years. Seems like they allow more bullying and harassment and the academics have gone downhill. Also, there is much more emphasis on competitive sports and much more complaints about the social life being much less friendly.

            The mainstream religious institutions and all schools have sold out to the babylonian whore.

          2. Yes. I am absolutely dumbfounded and how a large percentage of Caucasian people can be now. They have been fully dosed, overwhelmed with electronic radiation, and indoctrinated to the point that they are essentially NPCs.

            My wife and I frequently argue over stupid crap. We are planning our next moves and she is financially unable to figure out what I discussed as something that speaks for itself. She is utterly unable to comprehend the most basic financial and economic concepts.

            At least she’s not a spendthrift. However, she is so financially illiterate that we both have separate financial endeavors entirely. I don’t even share a checking account with her, in case I dump her.

            1. That’s a bright spot that she’s not a spendthrift. That’s probably lesson #1 in rules for money.

            2. Many women born after 1970 are spendthrifts in addition to being financially illiterate. Any woman who is not a spendthrift is a rare breed.

    5. I have been using all of the major ones extensively Gemini, grok, chatgpt, and even meta. The most advanced so far are Gemini, chatgpt and grok I think.

      It is almost like talking to a super IQ person. Definitely satanic to the core, summoning demons really, but extremely useful. I have been able to amplified things I have been thinking about. It is truly remarkable.

      1. Try asking this question!
        1 John 4 Beloved, do not believe every spirit, but test the spirits to see whether they are from God, for many false prophets have gone out into the world. 2 By this you know the Spirit of God: every spirit that confesses that Jesus Christ has come in the flesh is from God, 3 and every spirit that does not confess Jesus is not from God. This is the spirit of the antichrist, which you heard was coming and now is in the world already

  3. As expected, this morning’s durable goods orders, though weak looking, are a wash compared to last month. Thus, today’s GDP revision remains unchanged.

  4. Though the headline data look economically bearish, when taken in context with last months data, which were slightly revised higher, the data is largely a wash. I don’t see it affecting today’s Atlanta feds GDP revisions much.

    Core Durable Goods Orders (MoM) (Jun)
    Act: 0.2% Cons: 0.1% Prev: 0.6%

    Durable Goods Orders (MoM) (Jun)
    Act: -9.3% Cons: -10.4% Prev: 16.5%

    Durables Excluding Defense (MoM) (Jun)
    Act: -9.4% Cons: Prev: 15.7%

    Goods Orders Non Defense Ex Air (MoM) (Jun)
    Act: -0.7% Cons: 0.2% Prev: 2.0%

    1. Another step closer to the Temple of the Man of Sin! Headline reads:
      Knesset votes 71-13 for non-binding motion calling to annex West Bank

  5. Once again, ever rising M2. I remember the days when the FED used to report M3. They stopped reporting it, because the public realized how quickly the banking system was expanding.

  6. Life and liberty are secure only so long as the right of property is secure. All property is an extension of a person’s life, energy, effort, and ingenuity. Therefore, to destroy or confiscate such property (and every person has a ‘property’ in his own ‘person’) is, in reality, an attack on the essence of life itself.” – Mark Skousen

    1. I closed out all my trading positions this morning. I’m sitting on the side lines and watching things melt. I’m not buying on dips at this point. I’m waiting for the dust to clear. I trade all these small micro caps that I mentioned. They’re all pieces of garbage anyway. They all have to end up going back into the secondary market for raises. Eventually the floor underneath the platform will open up.

      1. Are you expecting a correction in the markets or just waiting to see what happens? Does Trumps September deadline to Putin have anything to do with it?

        1. Nothing like that, per se. I just noticed that all these small micro caps are just beginning to melt a little. I’m not looking for any definitive market move. I don’t read anything into it other than people taking profits. The small stocks that I had recommended have busted out balance sheets and need to go into the secondary market. This would be a good time for them. DPRO already announced and the stock gets beat up. The other ones will eventually have to as well.

          1. DPRO slowly ticked back up for that 10-20 cents if you were forced to hold on friday. the others are holding up well and still have decent volume for scalp plays for the short term. If the AI software, military contract PR’s come out for drone stocks they will go up more, and I think they will. But dilution then RS seemed to be the agenda for this sector. I think KSS could hit 12 from here sometime this week or next, very large short percentage. Of course btc mining stock are still in play.

            1. Zack’s dropped BTM to a #2 this morning. I just figured I’d let you know. I don’t own any and sold after the nice intraday run up a couple days ago.

            2. I was early to the party on KSS. I didn’t expect it to go that high. People must be watching this comment section….lol

              1. CLOV, GPRO, DNUT, RKT and some of the ev stocks, have high short interest. Even if you aren’t trading, it’s entertaining to watch and it’s a good week to trade. We can look back at April and see how the Trumpy tariffs were just a way to tank the market, build up short interest, so that now the deals are being made like Japan today, the market reacts in a positive way.

                “Meme stock mania” is an excuse to put in the media for the public, so the tutes behind the scenes can pump up companies that otherwise would declare bankruptcy. “It’s those crazy retail traders burning the shorts”, yet not really.

                KSS can go up more, insider sold this morning, letting me know they had it planned to squeeze it. With this volume the company is selling authorized shares and really should put out a big offering soon with this volume. That $4 barclay rating for KSS isn’t holding up very well and proves nobody should listen to these highly educated and overpaid analysts too much. ER in August so plenty of time before any news is released.

                On another note Ozzy Osborne died out of the public mindset. I’d say that means Less doom and gloom this week.

              2. It’s insane what the equity markets are doing. I am trading it, but I just don’t want to hold any of these trades overnight.

                Ozzy is in a worse place now, having sold his people out for some fame.

              3. Dissappointing today, I think they are just brewing up since the week isn’t over, and if shorts haven’t covered then nothing has changed and it’s still game on for all of them. At least higher upticks

              4. I happened to be holding a few hundred shares of LIMN overnight based on a successful stocktwits pumper recommendation. Out at 7am up over 3 pts. Stuff is insane.

  7. I find it interesting that the Rupert Murdoch controlled Wall Street journal and the News Corp would introduce an apparently bogus letter that Trump wrote to Epstein. The letter seems so over the top that it looks like a blatant attempt to redirect the entire Epstein argument away by creating this red herring.

    Something very similar happened back in 2004 when Dan Rather reported on CBS some ostensible evidence in a series of letters which implicated that George W Bush didn’t serve in the national guard as he had stated.

    Though the evidence against Bush at the time was overwhelming, these letters were subsequently proven to be fakes and they redirected the argument away from the original argument and the whole situation died on the vine. Nobody tried to question Bush’s service after that.

    Why would Rupert Murdoch report on this? It seems the MAGA movement is back on board with Trump. Though Murdoch stepped down as chairman from Fox Corp in 2023, he still wields control over the corporation and Fox News.

    This letter that Trump supposedly wrote to Epstein works in Trump’s favor in the same way that the false letters worked in Bush’s favor.

    So, who wrote The false letters that provided the honey pot for Dan Rather to report on? Who wrote this letter that was supposedly addressed to Epstein?

      1. That’s a good question. I know it’s used often in intelligence operations to discredit investigations into something that someone wishes to remain concealed.

        I sometimes think of the term “Canary trap”, but that is slightly different. However, the canary trap can be used to discredit an adversary’s case.

        By introducing false evidence, which is subsequently used by the investigators, many observers will throw out the baby with the bathwater and discredit the entire investigation.

        While Canary traps are primarily used to identify the source of a leak, they can also be used to discredit opposition in its entirety.

    1. How do you know Epstein was even a real person or if that was the character’s real name? Nobody I know has ever met or seen the man, have you?? It’s all on the internet and television. Many of the photos in the media with all the characters of the story, look manipulated and photoshopped. Many of the facts presented are vague and don’t add up.

      It was nothing but a distraction story put in play before the Covid hoax started, and pumped in the media non stop during the Covid timeframe. They are really milking this fake story for all it’s worth. I don’t understand how anyone with a decent IQ level can even fall for this type of potty entertainment and think it’s real….laughable! But the soccer daddy mommy types that smoke ciggies and drink beer, really bought into it hook line and sinker!

      Wealthy men do not need to get on a plane and travel to an island to have sex with underage females. There’s plenty of that going on right here in the USA. Politicians are compromised at an early age, they don’t need to be blackmailed.

      It falls into the “all men are pigs” and “pedos everywhere” fear mongering and control agendas.

      1. Very good observations. You get no disagreement from me.

        “I tell you, Winston, that reality is not external. Reality exists in the human mind, and nowhere else. Not in the individual mind, which can make mistakes, and in any case soon perishes: only in the mind of the Party, which is collective and immortal”.

        O’Brien 1984

        The party, in this case, can be called the Jew synagogue Central banking cartel.

        1. While everyone was focused on the Epstein story, Trump got his stable coin bill passed. Now, that is The story! The digital gulag in the making. Sleight of hand performed by the synagogue!

    1. This article makes sense. My father who took the Pfizer kill shot started losing his eye sight a year later. He started getting wet macular degeneration. Ultimately it was his turbo brain cancer that killed him.

      1. It is a shame the way people are programmed to obey the authority of this world! Sorry about your father.

    2. I saw a quote by someone who visited an eye doctor.

      The doctor looked into her eyes and gasped. The doctor asked, did you take the covid shot?

      She said no.

      The eye doctor said, I didn’t think so. I can’t see any micro clots in your retinas. Everyone else has them and you’re the first I’ve seen for years without them. I can tell from your eyes you didn’t take the shot.

  8. A yawner….

    Housing Starts (Jun)
    Act: 1.321M Cons: 1.290M Prev: 1.263M

    Building Permits (Jun)
    Act: 1.397M Cons: 1.390M Prev: 1.394M

    Building Permits (MoM) (Jun)
    Act: 0.2% Cons: Prev: -2.0%

    Housing Starts (MoM) (Jun)
    Act: 4.6% Cons: Prev: -9.7%

  9. Look at how the blacks lived in 1954. This is a documentary titled, The Secret of Selling to the Negro.”

    https://youtu.be/78BwtuIqU68?si=Mf2XbL55IS1YZiZf

    When I was in elementary school back in the ’70s, before the rap music and the CIA inspired black counterculture infiltrated the community, blacks around me lived like this. They lived down the street, they owned houses and their families were intact. They had decent jobs.

    A lot has changed.

    1. Back then, they aspired to be and live like white people generally. I remember growing up in the late 60’s and 70’s and that’s when the cultural trouble really started. Race riots, family break down, the cultural revolution, which was inspired by the synagogue, was well under way. We also had a few black families in our area and we shared many of the same values, which helped. Now, this country is to fractured!

    2. This was the good old days when blacks aspired to be like whites and actually worked for it. Before the 80s many blacks were grounded, realistic, and hardworking and mingled with the rest of American culture. I remember a lot of black families who owned their houses outside Philadelphia.
      I also remember one black family throwing a big birthday bash at a local restaurant for their daughter and invited the whole first grade class. Now many younger blacks focus on identity politics, entitlement, and are programmed to hate everybody else. Many younger blacks don’t want to work hard as that is considered exploitation by the white man. In addition, the entertainment industry puts out hate music and hate movies specifically targeted towards blacks like gangsta rap and blaxploitation movies focusing on the worst of the negro culture as being cool. No doubt the SoS is doing this to cause division in our society.

  10. Powerful numbers this morning.

    •Retail sales very strong last month
    •Export prices up nicely, while import prices actually lower once again
    •Philly Fed really strong across the board and prices paid hotter
    •Initial jobless claims drops

    Retail Sales (MoM) (Jun)
    Act: 0.6% Cons: 0.1% Prev: -0.9%

    Core Retail Sales (MoM) (Jun)
    Act: 0.5% Cons: 0.3% Prev: -0.2%

    Retail Sales Ex Gas/Autos (MoM) (Jun)
    Act: 0.6% Cons: Prev: 0.0%

    Retail Sales (YoY) (Jun)
    Act: 3.9% Cons: Prev: 3.29%

    Retail Control (MoM) (Jun)
    Act: 0.5% Cons: 0.3% Prev: 0.2%

    Initial Jobless Claims
    Act: 221K Cons: 233K Prev: 228K

    Jobless Claims 4-Week Avg.
    Act: 229.50K Cons: Prev: 235.75K

    Continuing Jobless Claims
    Act: 1,956K Cons: 1,970K Prev: 1,954K

    Export Price Index (MoM) (Jun)
    Act: 0.5% Cons: 0.0% Prev: -0.6%

    Export Price Index (YoY) (Jun)
    Act: 2.8% Cons: Prev: 1.9%

    Import Price Index (YoY) (Jun)
    Act: -0.2% Cons: Prev: -0.2%

    Import Price Index (MoM) (Jun)
    Act: 0.1% Cons: 0.3% Prev: -0.4%

    Philadelphia Fed Manufacturing Index (Jul)
    Act: 15.9 Cons: -1.2 Prev: -4.0

    Philly Fed Business Conditions (Jul)
    Act: 21.5 Cons: Prev: 18.3

    Philly Fed CAPEX Index (Jul)
    Act: 17.10 Cons: Prev: 14.50

    Philly Fed Employment (Jul)
    Act: 10.3 Cons: Prev: -9.8

    Philly Fed New Orders (Jul)
    Act: 18.4 Cons: Prev: 2.3

    Philly Fed Prices Paid (Jul)
    Act: 58.80 Cons: Prev: 41.40

          1. Yes. Definitely sell your trading crypto positions on the news, if any positive outcome appears.

            And for stable coins, they are the future as they are all digital and AI. Bitcoin will reach a certain level in which the holders can buy everything. Also, there’s a good chance that all of the sovereign debt can be rolled into crypto’s as they will absorb a lot of the new debt supply.

            1. The reason why we read about all these stories about fraudulent wire instructions and all of these stolen checks is to plant the seeds in the people that a digital stable coin will provide the solution.

  11. $MP prices of secondary offering with shares @ $55. The CFO deserves a star for the timing and pricing level. That is definitely bullish and I see more upside in the shares.

    MP CRML UAMY

  12. Ryan Homes just stopped building out a townhome subdivision in Strasburg VA and said they permanently closed it. They leave behind a half finished street grid with utility build-outs. Their representatives refused to tell me the reason why. I think they were having a difficult time getting these first time home buyers qualified.

  13. We are seeing a definite slow down in sales and a trend in lower price per square foot here where we live. The market has not caught on yet, but the trend seems consistent.

    1. This summer has seen a marked slowdown in the areas I own. In Maryland, prices have actually dropped over the past 12 months with rents fading.

      In the Winchester and Shenandoah valley area, prices have still been up and rents have definitely been moving higher. Many people want out of the DC area….
      _________

      Majority of American homeowners want to cash in — and move somewhere more affordable

      https://nypost.com/2025/07/16/real-estate/more-than-half-of-us-homeowners-want-to-leave-their-cities/

      DC ranked 2nd in people looking for a home outside their immediate area. The DC area is very expensive and with remote work, I am getting tenants who can live outside the DC metro area.

      1. I am seeing that here in Southern New Hampshire. A lot of people from the Boston area moving up here.
        People living in blue run metro areas are feeling the ugly side effects of leftist socialist policies. Blue run metro areas are expensive, restrictive to do business, taxes are high, and the crime is much worse.

        The only problem with these people is most of them voted for the liberals that brought on those problems. When they move out to the countryside, they vote for the same type of assholes that bring on these problems that they are escaping. In effect, these urban transplants bring the problems with them.

        This is why I am all for gated communities where people need to apply and meet certain qualifications before being allowed into a community or at the very least if they are allowed into the community they should not be allowed to make decisions for the community for so many years. If they don’t like the community’s conservative values then leave. Liberals like to spoil it for everybody. Then when the liberals feel the side effects of their actions they go elsewhere and mess it up in the new place. I see places that used to be conservative that have become liberal or much less conservative.

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