New home sales plummet 17% to 2-year low as rising mortgage rates sideline buyers
New home sales plummet 17% to 2-year low as rising mortgage rates sideline buyers
New home sales plummet 17% to 2-year low as rising mortgage rates sideline buyers
New home sales plummet 17% to 2-year low as rising mortgage rates sideline buyers
New home sales plummet 17% to 2-year low as rising mortgage rates sideline buyers
It's also pretty typical for house sales to drop in the winter because people tend to not want to move during the holiday season. The biggest time for house purchases seems to be in the summer, when kids are out of school and the weather is nicer.
I think a more reasonable explanation is that the housing market was nuts from a little before Covid through probably around EOY 2022, so Dec. 2022 levels is still probably a little elevated vs "normal," whatever that means. This article seems a bit more alarmist than necessary...
This (at the end) is far more interesting to me than the rest of the article:
That's quite a bit of inventory, so this should drive mortgage rates down over the next year, especially since the reduced fed funds rate gives a bit more room for rates to fall.
Until we stop allowing corporations to buy and control nee home sales homes will never become more affordable.
We've had years of propaganda saying that Blackrock and Zillow buying every home they can afford has no effect on the market, but it's obviously having an effect. As well as their price fixing algorithms like the one made by RealPage who is being sued by the FTC/DOJ
Didn't Zillow divest their real estate wing 2 years ago?
Nah, the main problem is still supply of new construction. We've been behind pretty much ever since Covid, and demand has only increased. That has much stronger explanatory power than whatever BlackRock is doing, especially since treasuries are interesting again.
It should drive prices down too, but it's not doing that either. Markets are based on whimsy now.
Eh, I don't think so. I don't think there's an oversupply, inventory seems to also be falling. High mortgage rates discourage both buyers and sellers.