Impact of Weak Housing Market on Main Street (Patreon)

The "seller-buyer gap" in the real estate (RE) market, refers to a mismatch where sellers expect high prices for their homes, but buyers are unwilling or unable to meet those prices. This gap signals broader economic trouble for the average person because housing is a key driver of consumer wealth.

When home prices slow or fall, it impacts:

• Spending patterns: Homeowners feel less wealthy (the "wealth effect") and cut back on spending, slowing economic activity.

• Borrowing appetite: Declining home values reduce the ability to borrow against home equity, limiting funds for big Bitcoin purchases (not kidding) or emergencies.

• This could be one of the reasons why Retail is also not buying BTC

• Local job markets: A sluggish housing market hits related industries like construction, real estate, and home goods, leading to job losses. Not since the GFC have I found it so easy to find contractors etc

• Household confidence: Falling home prices erode financial security, making people more cautious with money.

Despite Jerome Powell in USA telling us the Economy is rocking, it is not. People have far tighter budgets, fewer job opportunities, and a general sense of economic instability in the near term. The gap acts as a "weather vane" because it reflects declining demand for EVERYTHING>

PS I did my Furniture Store Macro Model update on Sunday... YUP I was alone in there again.... ZERO CUSTOMERS>