Posted on 06/22/2023 7:37:53 AM PDT by Kaiser8408a
Like a bad good news, bad news joke, the good news is that US existing home sales ROSE 0.2% in May. The bad news? Existing home sales are DOWN -23.16% on a year-over-year basis.
And the median price of existing home sales fell -3.44% YoY as inventory for sales remains missing in action (like Biden debating Democrat challengers).
We are living la vida Biden.
I propose that Puerto Rican crooner Ricky Martin replace Janet “Transitory” Yellen as US Treasury Secretary.
(Excerpt) Read more at confoundedinterest.net ...
The Fed promised more rate hikes this year.
My AMD stock went down and down and did many others.
The Brits have raised rates again another.5%
Home sales may be down down, but my own experience is that prices have declined very little. Particularly in good, middle-class neighborhoods.
“Existing home sales are DOWN -23.16% on a year-over-year basis.”
People don’t want to give up low interest rate mortgages.
Until mortgage holders offer roll over programs, people will stick with under 4% mortgages and the houses that those mortgages are on.
One program might be: list your house by July 15th, settle by October 15th and your new mortgage will have a rate that’s only .8% higher on the refinanced amount (plus the going rate on any additional amount).
“median price of existing home sales fell -3.44% YoY”
So a house that say was worth $400,000 in January 2019 that shot up to $600,000 in June 2022 would now fetch $579,400.
Step increase rollovers might sell better.
The rolled over original amount say would go up by say .2% per year.
3% -> 3.2%, 3.4%, 3.6%, 3.8% ... -> 5-year ARM (when the rate would meet or exceed that of a 5-year ARM)
Home buyer have been using free money. Now they have to pay for it.
That is sales. The houses sold may or may not represent all houses.
Sellers in my neck of the Upstate NY woods have been dropping their prices for a while now.
I know of some some who’ve had to sell for below assessed value.
But I’ll betcha that the people who bought those places won’t get a break on their property tax assessment.
Funny how that works...
Build back better!
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