Posted on 05/29/2022 7:19:40 PM PDT by RomanSoldier19
Moody's Analytics chief economist Mark Zandi is ready to call it. He tells Fortune that we've officially moved from a housing boom into a "housing correction."
The real estate data rolling in for April and May shows that the U.S. housing market is softening. New home sales fell 19% to their lowest level since April 2020. Redfin reports 19% of home listings cut their price over the past month. Inventory is rising fast, while mortgage applications and existing home sales are also falling.
This drop-off isn't a result of seasonality, or a soft month or two. Zandi says it's a trajectory flip: Demand is pulling back—fast—in the face of mortgage rates that have spiked dramatically.
"The housing market has peaked…everything points to a rolling over of the housing market," Zandi says. "In terms of home sales, they're falling sharply. Housing demand is coming down fast. Home price growth [will] go flat here pretty quickly; we will see [home] price declines in a significant number of markets."
(Excerpt) Read more at finance.yahoo.com ...
Demand still VERY high in Phoenix, and prices are NOT dropping. Less demand than a year ago, but more than in previous years. A correction is not a bust nor is it a popped bubble.
People aren’t going to be jumping into a mortgage on a home that’s worth $600k when it was worth 500 a year ago, on a loan that is 2% higher interest now than 6 months ago.
With 10% inflation a year, house prices won’t drop that fast. They’ll be worth less, but with the dollar dropping, I don’t think prices will be affected as much as in prior housing busts.
” A correction is not a bust nor is it a popped bubble.”
Mortgage rates will be over 7% this summer, and climb over 10% in 2023.
That will be a very loud pop.
I’ll admit that I need better persistence of vision.
Rent will be a driver of house purchasing.
WEF not withstanding.
Full disclosure;
I own two houses on acreage in Hawaii debt free.
But watching what the mainland house prices are doing is crazy!
Way too high!
Hawaii artificially limits land, restricts house building with silly regulations, and NIMBYisms;
but the mainland has lots of land, good access, and they still look like monkeys Effing a football.
Good luck kids.
Anyone that has posted a for rent or sale sign on almost any internet forum can tell you about the great number of responses for country property . I can’t give any experience but even small cities seem to be short rental and sales property in my AO . Big cities are what is driving the specs but half of America is giving up on cities . I see mansions going for $15000 in inner cities around me although I keep them as far away as Thomas Jefferson did and he rode his horse 11 miles away from DC every night so he could sleep on his farm .
An acquaintance who works in the home loan business was just laid off. This is a guy who has worked steadily for years, not a new hire.
I’m a cash buyer and have been waiting for this. Watching prices fall has been interesting.
Lower demand where I live in Orange County, but the prices are holding firm for now.
“Jimmy Wilson, you just won the Powerball. What will you do now?”
“I’m gonna buy groceries and fill up my gas tank!”
I’m potentially interested.
Not sure about the rate of interest though.
Simple explanation is unless the seller needs to sell urgently, most home owners are loathe to drop prices to sell when they were getting high offers just days ago.
Seen it again and again and again.
How are your property taxes?
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