Posted on 07/26/2022 7:10:54 AM PDT by millenial4freedom
New home sales in the United States shrank 8.1% from a month earlier to a seasonally adjusted annual rate of 590,000 in June of 2022, well below market expectations of 660,000. It is the lowest reading since April of 2020, as the housing market is cooling due to a rise in mortgage costs. Sales fell in the West (-36.7%), the Northeast (-5.3%) and the South (-2%) but rose in the Midwest (42.3%)
(Excerpt) Read more at tradingeconomics.com ...
Unexpectedly!
Transitory housing market? Recession..
Rising costs due to inflation and higher mortgage rates and an impending recession, even a cave man can figure out how that would affect new sales.
But they can't sell at profit (with their margin) and lose money.
Whew. I sold my place in April before interest rates rose.
Or they skimp on quality and materials and hope they don’t get sued later like our builder did.
Watched my parents go through this insanity with interest rates in the mid-70’s. I think their mortgage was something like 19%? Yikes!
Grandpa took matters into his own hands, paid off their mortgage and then they paid him back, at a more reasonable rate.
Living BELOW YOUR MEANS and remaining debt free while building wealth enables you to thwart Mother Government at every turn and enables you to do things like this for your kids; few can do that now. :(
So, SO HAPPY to not be in the market for a home, buying OR selling. Hoping to stay here on the farm until I’m carried out, feet first! ;)
100% Barak Obiden’s fault.
My father worked for the bank that held our mortgage. He got the loan in 1973 and they negotiated out in 1981 for a lump sum.
Don’t worry folks, this is just part of the transition, Karin told us so. I always put my utmost faith into black, lesbian, immigrants. To hell with econ degrees. We need to listen to experts in gender studies.
^^^ THIS^^^
True that. But then, housing prices weren't sky high either.
Now that prices and interest rates move up and down some, the best way to play it is to be patient for a little while before buying so you can buy at low price, even with a high (relative to today) interest rate. That'll give you a low mortgage balance. Then a few years later when the Fed inevitably lowers interest rates again, you can refinance and have both a low balance and a low rate.
We are nearing end of a major remodel...our electricians are saying they “are all caught up”...which is why they have been able to do so much for us in past week....they are NEVER all caught up...bad sign.
Recently saw a nice, new, single story 2300sf house in a hot metro-Atlanta sales area with a $390K asking price, been on the market for 8 days. Six months ago it would have had probably 20 offers at $430K or higher within the first 2 or 3 days. So maybe things are cooling down.
Cooling way down in the 500k+ price range. At 250k-500k people still need houses and will pay a lot of money either to landlords or banks for the privilege of a roof. At below 250k buying at 5%-7% rates is cheaper than renting (excluding local taxes in some cases). The actual demand for the instrument will drive rates back to 4%, that for first time buyers affordable. Second Houses and Trading up will be almost twice as expensive as it was in 2018 unless prices fall and property tax assessments also fall by 30-50%
It is great that so many new voters are learning the consequences of free government money and the lies of treasury and central bankers about inflation are clear.
Only a 10% drop...
My current house, I hired a structural engineer to scrutinize it top to bottom. Glad I did. The (highly respected, grossly overrated) builder had neglected to put a necessary purlin along the whole south roof. There was a visible depression, but the seller got it fixed before we took possession.
It's mostly been an ok house, but we've done a lot of upgrades.
This one is on "our team," and I have to spit the bitter taste out of my mouth every time I think what the neocons are doing not just to our country but the world.
They knew China was coming but spent gazillions losing the war for the hearts and minds of camel jockeys.
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