Posted on 01/19/2024 10:49:30 AM PST by ChicagoConservative27
Existing home sales fell to their lowest point in 28 years in 2023, while the median price of a home reached a record high, according to a new report from the National Association of Realtors (NAR).
Sales of previously owned homes dropped to 4.09 million last year, marking the lowest annual level of home sales since 1995, the report found. The median price of an existing home, on the other hand, rose to an all-time high of $389,800.
Home sales fell 1 percent last month alone and fell 6.2 percent compared to December 2022, to a seasonally adjusted annual rate of 3.78 million, while the median home price rose 4.4 percent year-over-year to $382,600.
(Excerpt) Read more at thehill.com ...
Joe Jimmy Carter Biden
Can we escape in a balloon?
The good news is that the median home price is a bargain, compared to anytime in the future! Those many trillions of debt that Joe Biden ran up, needs to be paid for by inflation. Uh, hyper-inflation that is.
They never ask the right questions. Why are home prices so high? Because the supply is much lower than demand. Why is the supply so low? Because new homes cost a lot in materials, labor and red tape to build and they are being built way outside of “town” where there is land to build them slightly more affordably; and because there is little incentive for people to sell their existing home with their low (or no) mortgage rate and lower property taxes and to trade it for a higher mortgage rate and/or a higher property tax valuation.
Interest rates are a part of it but the bigger problem is socio-structural. If rates dropped back to under 4% home prices would only go up as demand would increase but the incentive to sell existing homes would still be next to non-existent due to property taxes being assessed on the purchase price of a much more expensive home. There is no cure for this problem on the horizon. We need a radical shift on policy on many fronts.
” There is no cure for this problem on the horizon.”
Actually there is, reverse the Chevron decision
so Democrat union government employees aren’t making obnoxious regulations anymore and quit electing Democrats that allow those unions that much regulatory power.
problem will melt away.
The US housing market is a vast place that allows easy transactions compared to other places around the world. Fleeing individuals find it a option to park money.
This is another reason why gen x, y, z, are competing against such buyers and find it difficult to locate homes at a affordable price.
I have a suspicion that many of these hedge fund owned properties will get sold to the government for even higher prices as housing for illegals.
This is the primary reason. Homes are still being snapped up for cash. The data adds up to our crony government corporation and banking partnering to ensure we have nothing.
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