If job losses and cash handouts just to survive represented the “first economic wave” as a consequence of the global health pandemic of COVID-19, then sadly business bankruptcies and home foreclosures will represents a much larger “second economic wave” of the emerging New Great Depression across the planet. Many millions simply will not be able to afford to keep repaying their mortgages – and when house prices inevitably collapse, millions more who are underwater (owing more than the value of the home), will just hand in the keys and walk away.
- Global median house price to income ratio is around 6;
- All property markets expected to drop at least 10-15% in Depression;
- In more than 20 industrialised countries, the median house price to income ratio is over 20;
- In those countries where median house price to income ratio is over 20, a market crash of 50% drop or more is certain;
- In countries where govt has allowed property to bubble to ratios of 30 or more the property crashes will significantly deepen and prolong depressions.