Posted on 05/30/2023 7:00:11 AM PDT by millenial4freedom
S&P Dow Jones Indices (S&P DJI) today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for March 2023 show a continuing recovery in housing prices, as all 20 major metro markets reported month-over-month price increases.
“Two months of increasing prices do not a definitive recovery make, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end," Craig Lazzara, managing director at S&P DJI, said in a statement. "That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months.”
(Excerpt) Read more at spglobal.com ...
There’s always a time lag when housing prices seem to defy gravity as people try to hold out as long as they can, simply not accepting that the value of their property has already collapsed.
It took about a year in 2008, between when sales went to virtually nothing (people wouldn’t pay the prices being demanded), until the collapse set in.
There is no real housing market, it’s a derivative of the mortgage market. In these cities there are more people who qualify for recently re-rolled-out special loan programs. Just like 2008, subprime borrowers are being used to prop up markets, and inevitably left holding the bag.
What is holding up the real estate markets in many places now is the lack of available properties to purchase.
No existing home owner wants to sell unless they already hve a place bought. Plus anyone who bought a house in the last ten years has an interest rate three points lower than a mortgage is today. Another reason not to buy/sell. Lastly, there are now a lot of people like me that do not have a mortgage anymore on their current home and are not looking to go into debt.
All these things add to the lack of liquidity in the market.
N Central USA hardwood log prices have collapses and they tell me that you cant even give away Red Oak. Maple and a couple others are going in short and weak spurts. Lumber prices are crap obviously.
Maple export prices are not good at all. Germany used to get quite a lot and we all know what is happening in Germany. They tell me the Pacific rim export is collapsing.
That indicates bad times.
Just in time for the next administration.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.