Posted on 09/19/2022 12:52:02 PM PDT by ChicagoConservative27
The US housing market is in the midst of a “deep recession” that could put pressure on the Federal Reserve to ease up on interest rate hikes, a prominent economist warned on Monday.
Homebuilder confidence declined for the ninth straight month in September as surging mortgage rates and steep prices pushed many buyers out of the market, according to the National Association of Home Builders.
Builder confidence fell to its lowest level since 2014 when excluding the early days of the COVID-19 pandemic, the index showed.
The prolonged downturn in confidence shows the housing market has been “in a tailspin for the whole of this year,” according to Pantheon Macroeconomics chief economist Ian Shepherdson.
“Activity tracks mortgage applications with a lag, and the early September numbers are grim, even before the full hit from the rebound in mortgage rates in recent weeks works through,” Shepherdson said in a note to clients on Monday.
(Excerpt) Read more at nypost.com ...
I’m hoping my daughter and son-in-law will be able to buy a house in a few years. They both have great jobs, but who knows what the future will do?
Cash talks louder than buyers who seek loans. Your son can get sellers to lower their asking price a great deal lower than for those seeking loans. My daughter just bought a house, got the asking price dropped $250G because she paid half in cash and could easily get a loan for the remainder. She moved in this past weekend to a solid home with additions, better than others she looked at over past few months that were pricier.
Houses for sale around here have started going through price drops because buyers can't afford loans. It's now a buyer's market; your son has more choices now for location and quality, and less competition.
” turns out the big bad “deceptive content” is the “I Did That” jpeg you posted.”
LOL! Not the image. The site.
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When the republicans win, and inherit this mess, guess who they’ll blame it on.
See we had it all under control and now all our plans are ruined.
“ Not to worry. Abortion will save the rats. (S)”
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I know your comment was meant as sarcasm but DUPLICITOUS SABOTEURS such as LINDSEY GRAHAM are actually intent on trying their best to make that a reality.
If that "prominent economist" was legitimately certain of that statement, he'd be named.
The Fed is in a panic. Inflation not coming down, the calc was rigged to include fuel to get a measly reduction from 8.5% to 8.3% and price increases are showing no signs of letting up. Ever.
So what's the Fed to do? Crash the economy. Jobs be damn'ed, the economy's gonna go right into the crapper in the name of squelching inflation. Kiss your 401K's goodbye, kiss your jobs goodbye, kiss your ability to purchase anything goodbye.
If you think the labor shortage is bad now and prices are high, just wait until the layoff's start and there's even fewer people to make anything.
Won't matter how much prices "fall" when there's nothing to buy in the first damn' place.
In under 2 years, we've gone from a world-class economy to Venezuela under Dementia Joe.
Don't thank a Biden voter, punch the dummies right in their damn' mouths.
Buying a home in the very recent past should have only been done with a VERY low down payment. In states with no recourse laws, a buyer might be able to negotiate a very significant reduction in their mortgage balance
Do you know the average age of an assisted living resident?
It is 82 years old.
The boomer effect that you describe will happen but it is going to take a long time—not much help for current home-buyers.
He will definitely wait for it to show a hint of the bottom before buying.
only 5 sales last month in 1500 house development
usually at least 25
prices dont dip much just slow sales
too many govt employees
Home prices will drop by 25% to 35% when the bubble bursts.
Yup, the hapless Republicans are being set up by the Democrats to take the blame for any recession or economic meltdown that happens they win in the fall elections.
It’s hard to envision even a 25% drop in home prices when inflation is being reported at 8% but is likely even higher.
Yeah, that’s an important offset it seems to me. Hard assets are valuable in an inflationary time.
Yes. I see that here in Texas.
They are totally vultures. But I have read, they are exposed on a large level with the overpriced housing market.
Lots of people are moving to Rural areas in Texas and driving up housing prices on a big scale. It will continue until the extreme panic of approaching collapse is over. There will be a collapse, it will affect some areas more than others.
When people struggle to afford to eat they will choose to eat over paying a mortgage.
The U.S. government will step in -- as it did in 2008-09 -- and do whatever is necessary to prop up the value of the homes with delinquent mortgages.
Plenty of young people with an unstable economic future and no hands-on skills are quite happy to oblige BlackRock...
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