What is Meredith Whitney's warning about the U.S. housing market?

Meredith Whitney, the "Oracle of Wall Street," has warned that the U.S. housing market is facing a looming crisis, with existing home sales tracking under 4 million on an annualized basis, the worst in over 25 years.

Why are seniors reluctant to sell their homes?

According to the article, around 60% of homes are owned by people over the age of 55, and for many of them, the prospect of downsizing is not realistic. The financial hurdles associated with moving, such as capital gains taxes and other relocation costs, are proving to be prohibitive.

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Meredith Whitney Foresees Trouble Brewing in U.S. Housing Market

Q: How has the "inventory lock" impacted the affordable housing market?

The article states that the reluctance of seniors to sell their homes has created an "inventory lock," leading to persistently high prices on the limited inventory that does exist. This has made homeownership increasingly out of reach for the average American household.

6 Sep

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Summary

Existing home sales tracking under 4 million, worst in over 25 years
60% of homes owned by people over 55, downsizing not realistic
Tax hurdles and capital gains discourage seniors from selling

Meredith Whitney Foresees Trouble Brewing in U.S. Housing Market

As of September 6th, 2025, Meredith Whitney, the renowned "Oracle of Wall Street," has sounded the alarm on the U.S. housing market, predicting fresh trouble ahead. According to her recent interview with MarketWatch, existing home sales are tracking under 4 million on an annualized basis, the worst performance in over 25 years.

The root of the problem, Whitney explains, lies in the country's demographics. Approximately 60% of homes are owned by people over the age of 55, and for many of them, the prospect of downsizing is not a realistic option. Lower-cost housing alternatives are scarce, and the financial hurdles associated with moving, such as capital gains taxes and other relocation costs, are proving to be prohibitive.

This "inventory lock" has had a significant impact on the affordable housing market. Federal Reserve chair Jerome Powell acknowledged last September that the housing market is "in part frozen," with many homeowners reluctant to sell due to being locked in at lower mortgage rates. The consequence is persistently high prices on the limited inventory that does exist, making homeownership increasingly out of reach for the average American household.

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