The monthly index looks at current sales, buyer traffic and the outlook for sales of new-construction homes over the next six months. September’s reading was the first time in five months that overall builder sentiment levels dropped below the break-even measure of 50.
‘Transitory.’
Let’s Go, Brandon!
“Crushing” mortgage rates.
Someone forgot about the early-mid 1980’s.
“In many cases, even repurchasing their same home at today’s mortgage rates would be out of a typical buyer’s price range.”
It would be interesting, if people would calculate, if they could buy the home they live in now, at today’s prices and today’s interest rates.
Personally, I could not buy the house I have lived in for 30 years, at today’s prices.
And the key reason is that the cost of housing has gone up far more than my income has gone up over the years. I’m sure that has happened with a lot of people.
Here in west Ocala, FL (my neighborhood) they’re building houses left and right, literally. The main road out of the subdivision is usually blocked by trucks and workers building. Me hates it....
7.74% is the long term mortgage rate average*. Today's realtor.com rate is 7.751%, so rates are just now at the long term average.
sources:
* Kiplinger: The Magic Mortgage Rate Number to Tip the Housing Market
Don’t be surprised if the commercial real estate market in NYC, LA, San Francisco, Chicago and Philadelphia has a collapse in early 2024, soon to be followed by a collapse of residential values. These cities are unlivable and already have unsustainable commercial vacancies. Many investors are walking away from their holdings and are not refinancing. Once the cascade starts, it will only stop at a very low level.
“US home building sank in August, dropping 11.3% from July levels, as mortgage rates stayed elevated amid lingering inflation.”
We are seeing an interesting trend with relatives and friends in many cities/areas of America.
The home owners in those cities in their late 50’s and up are making their current homes more adaptable and livable for those of us not wanting to move into a senior citizen environment.
We are seeing that trend increase locally, and in the SW, the MW, New England, S. Carolina and Florida.
The opposite is happening in many areas of California, most of Oregon/Washington, DC area and most blue states/cities. People are leaving those areas.
About ten years ago my wife and I and many family members and friends our ages, started to retro fit our homes for senior citizens/us. The goal of most of us was to be carried out feet first versus going into a strange place to stay until you die.
Since, the covid BS, only one family in our 2 cul de sacs have sold their home out of 50 homes. Basically every home is being modified for seniors or has been in recent months.
One relative in the midwest, who lost his wife to cancer, had his home remodeled from 3+ bedrooms to a guest room and his bedroom and inside storage rooms for his
hunting, fishing and other sports. He had it designed to basically close it down after Christmas until Easter. He heads south for the winter.
The most recent couple to do the retro had two guys in the retro business basically alter the inside of their home to accommodate his new and heavy inside/outside wheel chair.
They now only have 1 guest bedroom and an office/den for each of them. They spent a lot of time at our place to gather ideas for their new retro home.
3 families in different parts of Floriduh have done similar retros in their homes.