The Sequel Is Here: Housing Crash 2 Accelerates as Home Sales Drop to the Lowest Level Since 2009

If you are trying to sell your home right now, I feel so sorry for you.  Thanks to the Federal Reserve, mortgage rates have risen to very alarming levels, and this has scared millions of potential homebuyers out of the market.  Compared to two years ago, the average potential homebuyer is facing mortgage payments that are close to $1,000 per month higher.

I don’t know about you, but I certainly wouldn’t want to pay $1,000 more each month for the exact same house.  So most potential homebuyers are staying out of the market until interest rates come down, and that could be a while, because officials at the Fed do not plan to reduce rates for the foreseeable future.

On Thursday, we learned that sales of pre-owned homes fell 3.3 percent last month.  Overall, they have now dropped to the lowest level that we have seen during the month of June since 2009…

Sales of pre-owned homes dropped 3.3% in June compared with May, running at a seasonally adjusted annualized rate of 4.16 million units, according to the National Association of Realtors.

Compared with June of last year, sales were 18.9% lower. That is the slowest sales pace for June since 2009.

In June 2009, we were right in the middle of Housing Crash 1.

Now Housing Crash 2 is here.  Over the first six months of this year, only about one percent of all pre-existing homes in the U.S. changed hands…

House sales have reached their lowest level in over a decade, with only one percent of properties changing hands in the first half of the year.

Fresh analysis by real estate brokerage RedFin shows that just 14 out of every 1,000 homes across the US were sold in the last six months.

If you are planning to purchase a home, it is going to cost you a lot more than it would have a few years ago.