Posted on 07/20/2022 7:25:19 AM PDT by Browns Ultra Fan
Instead of The Boston Strangler, we now have the DC Strangler. Better known as The Federal Reserve and their war on inflation.
US existing home sales crashed -14.24% YoY and -5.40% MoM in June as The Fed tightens its icy grip on the housing market. Existing home sales were lower than expected at 5.12 million home sold SAAR.
Median price for existing home sales declined to 13.27% YoY as inventory available for sale remains MIA. And The Fed’s balance sheet is still out in force.
The US housing market in terms of sales has entered a bear market, but with The Fed’s balance sheet stimulus still hunting asset prices, it is a grizzly bear market in terms of affordability.
(Excerpt) Read more at confoundedinterest.net ...
Hope. Spare Change
So the new homes that are being built near us that jumped from “mid $400s” in the spring to “from the $800s” now might not sell as quickly as expected? But, we have seen in the past couple of months that things have slowed down a lot. For about a 3 month period houses were being snapped up within days of being listed. Now? Not so much. And we’re talking $75K houses going for $400k. Weird. 😵💫
The market’s gone crazy lately and about time it was reined in. I’ve been looking at prices in rural Georgia I wouldn’t pay in New Jersey. We need a healthy dose of reality.
I wonder what Black Rock and Vanguard are doing to exploit the situation.
if existing home inventory is non-existent, shouldn’t that drive prices for existing homes UP rapidly ?
i believe this is saying existing home prices are up 13% year-over-year, but that seems very low for a situation where there is little to no inventory and high demand
if existing home inventory is non-existent, shouldn’t that drive prices for existing homes UP rapidly ?
i believe this is saying existing home prices are up 13% year-over-year, but that seems very low for a situation where there is little to no inventory and high demand
**I read somewhere that supply is low along with demand due to rise in mortgage rates..so, it’s perfect storm..low inventory, inflated prices & high rates. Demand has tanked. The market needs a correction but until inventory increases, that won’t happen. That’s my thought about the situation..
Wanted to add..question is where the market goes, correction/bubble or full housing crash?
As apparently as the Fed , interest rates and the stock market goes, this is a “bad news is good news” moment.
I live in a midwest metro area with a big 10 university as an anchor. Home sales are very brisk. If the sale price is right, the sold sign goes up in a couple of weeks..
“i believe this is saying existing home prices are up 13% year-over-year,”
I also think that a lot of people who bought “high” now have to hold their property until they can sell and break even. They will lose too much if they sell now.
We are currently buying 5.75 rural unrestricted acres in N GA. The normal price is $10,000 per acre. Recently people have been asking $20,000 or more per acre. We managed to cut a deal for $11,300 per acre but its got two driveways cut in and an electrical pole wired to the street already in place. Seller paid for perc test and new survey so we figure it evens out. Now we have to sell our house in Atlanta but it has slowed down somewhat from say 3 months ago.
Right on. We need to keep pumping money and stoking inflation so real estate people dont suffer. Hallelujah!
No kiddin'? The median price has not dropped merely by 13.27%, but rather to 13.27% of what it was a year ago!?
Wow! Prices are now less than one-seventh what they were a year ago!
Regards,
In my area nothing gets built that sells for less than $1 million. And this is one of the poorest and most dangerous cities in America. (those houses aren’t going for what builders wanted anymore)
We bought a house last May that was less than stellar, spent $80,000 on renovations and remained convinced we had to spend that much or more to get 30+ years of original owners neglect corrected.
We ended up selling the property for basically break even year over year by putting that much lipstick on the pig.
I’m shocked that the people buying it were literally $50 away from their borrowing maximum. This is not going to be a soft landing. People are still paying prices 20-25% ABOVE year ago values. On top of it they are going to be cash poor and unable to even do basic upkeep let alone absorb a major repair and, I suspect, there will be 1-3 in the next 3 years.
It’s up 13% this month of 2022 vs this month of 2021. Overall houses are up some 30%-40% since 2020. I fear it will take a long time to shake out. If you’re in a home you bought anytime from 2009-2020 you’ve got a great mortgage rate and a lot of equity. Unless you have to move, you may never sell. Even if you have to move, you may be able to rent the previous home and cover the mortgage.
Dunno about the Fed “strangling.” Interest has to rise to slow down inflation. It’s called the “economy.”
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