Dave Ramsey cuts through Colorado man’s ‘conspiracy’ theory about a housing market crash. Here are the facts

Dave Ramsey recently addressed a Colorado man’s ‘conspiracy’ theory about a housing market crash on a recent episode of “The Ramsey Show.” Shane from Denver, Colorado, and his wife were concerned about the housing market in their city, fearing a crash in the next six months. Their belief was based on online research and alarming media headlines.

Ramsey advised Shane to step away from the internet and look at the facts. Economic indicators like GDP growth and low unemployment typically boost consumer sentiment, but there has been a disconnection between sentiment and reality in recent years. Consumer sentiment has even hit a record low in 2022, below levels seen during the 2008 financial crisis, according to the St. Louis Federal Reserve.

Shane shared that they had purchased their home for $500,000 in 2021, and it is now estimated to be worth $700,000 with only $280,000 left on the mortgage and $100,000 in savings. Despite their financial success, Shane was swayed by negative online headlines.

Ramsey emphasized that there are no facts indicating a housing crash in Denver in the next six months. He pointed out that the U.S. housing market is actually undersupplied, which supports the value of existing homes. The gap between home constructions and household formations has been growing, with Colorado facing a shortfall of 101,000 housing units.

Ramsey encouraged Shane not to rush into selling his home, predicting that home values will continue to rise in the next year. He stressed that logic points to a housing shortage, providing a more optimistic outlook for Shane and his family.