“The party is over,” Pantheon Macro chief economist Ian Shepherdson says of the price cuts, predicting the combination of falling demand and rising supply is likely to trigger price declines over the second half of the year as the housing market “finds a new equilibrium—from a seriously stretched starting point.”
Crucial Quote
“The Fed has signaled it may increase interest rates further to combat stubbornly high inflation, which could harm consumer confidence, and lower stock prices mean fewer prospective home buyers can afford a down payment,” says Fairweather, advising potential sellers to “do it quickly before demand falls further.”
Key Background
Agree. The Fed will not back down from their next .75% hike. Canada just raised theirs by 1%.
Sell your US home and move to Lisbon, Portugal? The Euro has been sliding against the USD so you will get more house for the money.
Thomas Sowell: There are no solutions, just trade-offs.
The report also showed home builder expectations for both current and future sales have dropped sharply, pushing confidence to its lowest level since May 2020.
In a statement explaining the battered sentiment, NAHB Chair Jerry Konter said production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction, as the cost of land, construction and financing exceed a home's market value in some cases.
SO-O-O if you most recently purchased a home.....that PURCHASE, in the future ,will depreciate.
