Mr Freeze! Existing Home Sales Drop -3.39% MoM In May, Median Price Growth At 14.8% YoY, Inventory Rises Slightly As Fed Stimulus Continues

Confounded Interest ^ | 06/21/2022 | Anthony B. Sanders

[Browns Ultra Fan]

Rising energy prices, rising home prices, rising mortgage rates, declining hope.

But as The Federal Reserve begins to withdraw it Covid stimulus, existing home sales declined -3.39% in May from April.

But like Covid itself, The Fed’s outrageous monetary stimulus is still in place, helping caused median home prices to rise 14.8% YoY. And inventory for sale is rising, but still remains low.

Jointly, Treasury Secretary Yellen and Fed Chair Powell are “Mr Freeze.”

[Browns Ultra Fan]

Rising energy prices, rising home prices, rising mortgage rates, declining hope. The motto for Biden and the Democrats.

[BiglyCommentary]

So what does this blogger think are the PROPER and CORRECT house prices? (Like asking an eco kook “What is the “correct” temperature for the earth mother?”.) And were they screeching after 2008 when the FED dropped rates, did QE on MBS’s, and made house prices go back up?

[Presbyterian Reporter]

“””Rising energy prices, rising home prices, rising mortgage rates, declining hope.”””

---

Yep. Housing is one of the last asset classes that has stayed strong in the first six months of 2022.

Lots of chatter that housing is now in trouble.

So far this year the crypto, stock, and bond asset classes have declined. People do not feel as wealthy today as they did on January 1, 2022.

And then to make matters worse, commodities (CRB) are 40% higher today than January 1, 2022.

[Presbyterian Reporter]

“””So what does this blogger think are the PROPER and CORRECT house prices?”””

---

Supply and demand will determine the housing prices.

When people are feeling less wealthy because there crypto, stock, or bond portfolio has dropped and when people are paying more for basic necessities, then demand for housing should logically drop as people do not have the money to buy/finance a house.

As I wrote in the above post, housing sure looks like it is going to drop in price.

[desertfreedom765]

Tell that to the hedge funds and investment groups that are buying real estate.

They seem to have all the money in the world.

[millenial4freedom]

yes, a major economist has come out of the woods, much to the dismay of NAR, and has stated that home values are likely to fall 5% through the middle of 2023.

https://ca.news.yahoo.com/us-house-prices-likely-drop-162844538.html

[BiglyCommentary]

My point is the FED will always be raising or lowering interest rates, and that effects house prices and sales. Do they think house prices should be totally divorced from that?

[Presbyterian Reporter]

“””Tell that to the hedge funds and investment groups that are buying real estate.

They seem to have all the money in the world.””””

---

That might be all in the past.

[Zathras]

We are seeing a cooling off in AZ.
We need the cooling off as things can’t keep going up at 30% per year.

[glorgau]

Prediction: by August there will be no YOY price growth. Momentum is coming out of the housing market very quickly. Still need to crank up interest rates another couple of points.

[glorgau]

5% ?!?!?!?

Nope, they’re going to retrace at least to pre-covid. This party is just getting started.

[Seruzawa]

The appraisal on my home went from 225K to 474K in one year. Home sales are down 30% in the last couple of quarters and 7.5% lower than that currently. No surprise. Pay scales aren’t the highest in Utah.

[Impala64ssa]

Bkmk