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Still Hot, Hot, Hot! US Existing Home Sales Fall -2.4% MoM In April, But Median Price Is 14.85% YoY And Inventory For Sale Remains MIA (Fed Stimulypto Still Helping Housing Bubble)
Confounded Interest ^ | 05/19/2022 | Anthony B. Sanders

Posted on 05/19/2022 9:47:40 AM PDT by Browns Ultra Fan

US Existing Home Sales were 5.61M SAAR in April, down -2.4% from March’s -3.0% MoM reading. But median prices YoY for existing home sales printed at 14.85%, still hot, hot, hot.

With 3 consecutive declines in MoM existing home sales, how can prices still be raging at 14.85%? First, inventory for sale in April remains low compared to 2010 (yellow line). Second, The Federal Reserve’s Stimulypto (excessive monetary easing) is still out there in force despite Jerome “Slowhand” Powell signaling rate increases (green line). 30Y mortgage rates are still rising.

Where do we go from here? 30 year mortgage rates have been climbing as The Fed signals its intents to tighten monetary policy. But with global economic slowing, Treasury yields have been coming down (like today’s -5.2 BPS drop (Germany’s 10Y Bund Yield dropped -8 BPS on slowing global economic growth).

But remember, the Existing Home Sales numbers are for April.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: blogpimp; bubble; clickbait; fed; housing; realestate; realty; sales
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To: Browns Ultra Fan

It will slow down when rates hit 16%. That was what I paid back in early 1980 for my first home.

I have never seen rates so low as the past few years. People are spoiled.

Of course homes back in the early 80’s were not quite as expensive but wages were not as high either.


21 posted on 05/19/2022 11:13:37 AM PDT by winterystorm
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To: Browns Ultra Fan

I sold my house (3 blocks from Apple HQ) in April. Waiting for the current bubble to burst before I buy more property (this time in TX). I give it till end of summer.


22 posted on 05/19/2022 11:25:11 AM PDT by AnotherUnixGeek
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To: Browns Ultra Fan

I think home prices in places like CA, will decline, as they have been ultra bloated and inflated for many years. While other states that have been approaching CA prices for the past few years, will be much less affected.


23 posted on 05/19/2022 11:31:04 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: FlipWilson
Exactly right. Buyers can lock in mortgage rates for 60-90 days. Housing is in bubble. It will melt like butter in a hot pan after parents have bought the house based on where the kids will go to school in Fall.
24 posted on 05/19/2022 11:42:52 AM PDT by entropy12 (Trump & MAGA are the only way to keep USA viable.)
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To: dragnet2

That is not what happened in the previous housing crash in 2010-11. Every state had significant price declines.


25 posted on 05/19/2022 11:44:08 AM PDT by entropy12 (Trump & MAGA are the only way to keep USA viable.)
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To: entropy12
In CA a 65 year old cookie cutter home with 1500 sq ft in a average or below average neighborhood, will run you about $750,000...lol

Everyone knows CA home prices have been ridiculously inflated/bloated for decades. A better/newer home in Texas, AZ, or Oregon will run you about 550k. Which of these two will be the most affected in an big economic shakeup? I'd bet the least expensive will fare much better in this scenario.

26 posted on 05/19/2022 11:54:02 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Yes, because price drops are usually percentage based.
a 750K house will drop more in dollar numbers than a 550k house.

My only point was, almost all areas will be affected when housing bubbles burst.


27 posted on 05/19/2022 11:57:15 AM PDT by entropy12 (Trump & MAGA are the only way to keep USA viable.)
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To: entropy12

They all will, I agree, but in the land of super bloated home prices like CA, I think they’ll be the most dramatically affected as opposed to other states where prices are much more reasonable. I could be wrong, but we’ll see.


28 posted on 05/19/2022 12:02:51 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

for sure. Just same as over-valued stocks drop more than value stocks during bear market.


29 posted on 05/19/2022 12:15:26 PM PDT by entropy12 (Trump & MAGA are the only way to keep USA viable.)
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To: ProtectOurFreedom

Just think about selling and moving (if desired) to another state with that money. You could live off the sale of the home forever. Wouldn’t that be nice!


30 posted on 05/19/2022 12:20:51 PM PDT by peggybac (My will is what I wanted. God's will is what I got.)
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To: cuban leaf

Loans are getting hard to come by. Even with 50% down, some lenders are not qualifying buyers.


31 posted on 05/19/2022 10:13:30 PM PDT by gunsequalfreedom (ui)
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To: Browns Ultra Fan

Inventory in our area is extremely low. Prices still escalating. We sold Mom’s house across the street in January and now it looks like ours will go for about $20,000 more.


32 posted on 05/20/2022 7:39:56 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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