Posted on 01/27/2023 7:29:54 AM PST by Kaiser8408a
The US housing market continues to struggle as The Federal Reserve continues to fight inflation. Today’s pending home sales are another nail in housing casket.
Pending home sales declined -34.4% year-over-year (YoY) as M2 Money growth went negative (-1.3% YoY).
At least UMich buying conditions for housing increased … to 44, well below 100.
(Excerpt) Read more at confoundedinterest.net ...
New home starts, in Texas, have not slowed down, at all. Full steam, ahead. Ditto for home sales....maybe slowing down, by a few days, at most.....from what we’re seeing.
Home starts/sales are local, not national markets. They are not like measuring the cost of living or joblessness, or any other economic activity, none of which are typically measured locally. So this is just for generating clickable headlines.
:-)
Well, I didn’t click on the link....so....no clicks, from me!
Behind the curve as usual: US pending home sales unexpectedly rose in December for the first time in seven months, wrapping up an otherwise poor year for a housing market battered by higher mortgage rates.
And yesterday someone posted an article saying that sales ticked up, but still down YoY
Which is it?
This cannot be; Biden said the economy and sales are booming.
HOUSTON — (January 11, 2023) — Despite charging through a pandemic with no let-up in sales, Houston real estate could not withstand the powerful economic headwinds that began swirling in 2022 and ultimately ended a long and much-admired record-setting run. On top of limited affordable housing inventory, mortgage rates were perhaps the biggest culprit, rising throughout most of the year as the Federal Reserve drove a steady campaign of interest rate hikes to tame soaring inflation. The move prompted many consumers to postpone homebuying plans – in many cases diverting to the rental market which thrived as a result. While mortgage rates have fallen steadily since surpassing seven percent in November, home sales continue to slow and will likely remain down through at least the early part of 2023.
Single-family home sales for 2022 were down almost 11 percent compared to 2021’s record pace, marking the first year that Houston housing has been in the red since 2015. Despite the sales slowdown, prices rising to new highs in the $400,000s kept 2022’s total dollar volume close to last year’s record level.
According to HAR’s December/Full-Year 2022 Housing Market Update, single-family home sales fell 10.9 percent to 95,113. Sales of all property types totaled 117,572, down 10.7 percent from 2021. Total dollar volume dropped just 1.5 percent to $39.3 billion versus $40 billion in 2021.
nine straight months of decline
We’re fortunate that this hasn’t effected our area!
I haven’t paid attention to the Houston proper housing market, in years.
Who’s article is this?
Thx.
The U.S. housing market showed a sign of early recovery, as pending home sales of rose for the first time in 14 months.
Pending home sales rose 2.9 percent in December, the first month-over-month increase since October 2021, according to data from Redfin on Jan. 25.
The decline in pending sales also eased for the first time in 10 months, to 30.9 percent from a record 35.1 percent drop in November.
“The small uptick in pending sales suggests some homebuyers returned to the market at the tail end of 2022 after demand plummeted in the fall,” said Chen Zhao, Redfin’s economics research lead.
“That's mostly because slowing inflation has driven mortgage rates down to about 6 percent from a peak of over 7 percent, giving buyers some relief and sending the typical buyer's payment down nearly $200. Along with the dollar decline in monthly payments, rates traveling down instead of up are helping some sidelined buyers get back into a house-hunting mindset.”
Thx!
High prices, high interest and low inventory are not a good combination.
Agree.
It seems like a new subdivision is going up, each week, in all areas of Texas we travel though.
Are you seeing this, too?
Many of them have homes that seem to go up, overnight. No thanks!
Where are all of these people coming from, that are supposed to be buying all of these new homes?
And when voting times comes around, at least 9 out of 10 of them will vote Democrat. You will get Shelia Jackson Lees by the gross to represent you.
Some home builders are still offering attractive interest rates that you won’t get with a conventional mortgage. Still, the market seems to be cooling down somewhat.
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