Posted on 11/30/2022 8:13:40 AM PST by ChicagoConservative27
The number of homes under contract fell again last month as high mortgage rates and home prices weakened buyer demand.
Pending home sales, a forward-looking market indicator, declined for the fifth consecutive month in October, falling by 4.6 percent, according to the National Association of Realtors’ (NAR) Pending Home Sales Index. The number of pending transactions decreased year-over-year by 37 percent.
“October was a difficult month for home buyers as they faced 20-year-high mortgage rates,” NAR Chief Economist Lawrence Yun said in a statement. “The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out a gain.”
Persistently high home prices and volatile mortgage rates fueled by the Federal Reserve’s fight with inflation continue to push buyers to the sidelines.
(Excerpt) Read more at thehill.com ...
8% interest rates will tend to do that
The price of houses is a relative term. It is in relation to what the people who live in your area can afford. The reason houses in the Silicon Valley area are so expensive is because the people that have jobs there are paid much higher than the average person. All real estate is local.
US Housing is at the initial stages of a correction after going straight up since the end of the Great Recession. Some markets like Austin, Tampa, Phoenix, Boise, all of CA, Nashville and several others have already corrected in price. Some as much as 20%. Other places like Buffalo, Cleveland, Knoxville, OKC, Tulsa are under valued in relation to other metro real estate markets.
Houston is now the largest volume market for home starts and permits in the country. Narrowly edging out Dallas/Ft Worth.
Conservatives like us are continuing to abandon places like NY, NJ, CT, CA, IL, MI and move to places like NH, SC, FL, AZ, TX, ID, NC.
The other major change that is effect demographic movements is the ability to work remotely. First during covid, but now many people do not have to get in their auto and drive to the office anymore. So, if that is the case, why not move to a place where you WANT to live. Not a place where you HAVE to live. Elon Musk may want everyone to return to the office, but many will not.
Rates are down to 6.77% Monday.
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