Home Prices down 5.5%<\/span><\/li>\n<\/ul>\nI think it will likely be a bit worse, but not by any means catastrophic in terms of prices.\u00a0<\/span><\/p>\nIt will be \u201ccatastrophic\u201d in terms of activity. Again, it will likely be very tough for real estate agents, wholesalers, and mortgage brokers. Flippers will also have struggles finding buyers and buy and hold investors will have a lot of trouble with financing.<\/span><\/p>\nThe most likely effect the global energy crisis will have on housing is that it will likely extend this \u201cfreeze\u201d for quite some time. Don\u2019t expect rates to be \u201cback to normal\u201d by the middle of next year.\u00a0<\/span><\/p>\nIt could possibly lead to a global contagion and financial crisis as well. While not likely in my judgment, with this much uncertainty going into the winter, it would be wise to stay as liquid as possible with as high of cash reserves as possible. If we do go into a deep recession, having excess cash to help with increased delinquency and higher interest rates is essential. It\u2019s also great for buying up cheap assets at fire sale prices.\u00a0<\/span><\/p>\n