The price of residential homes could fall by as much as 20% next year off the back of mortgage rate hikes that are reducing demand, said Ian Shepherdson, chief economist of Pantheon Macroeconomics.
With mortgage rates at their highest level since 2002, current homeowners are unlikely to purchase a new property unless out of absolute necessity, said Shepherdson, according to CBS News. Housing prices were up 13% annually in August, down from 15.6% annually in July, the largest monthly decline in annual price growth in the more than 27-year history of the S&P CoreLogic Case-Shiller Home Price Index, S&P reported Tuesday.
“[W]e expect home sales to keep falling until early next year. By that point, sales will have fallen to the incompressible minimum level, where the only people moving home are those with no choice due to job or family circumstances,” said Shepherdson, according to CBS News. “Discretionary buyers are disappearing rapidly in the face of the near-400 [basis point] increase in rates over the past year.”
The dumbocrats efforts to destroy this country are in full view!
Vote RED!
The folks that purchased homes and vehicles in the past two years are going to find they are upside down in a bad way. People were buying homes and offering tens of thousands over the already ridiculous asking prices, and many were waiving inspections on the house so their offer would be accepted. Pure insanity.
Well of course its about to fall. Wasnt sustainable, big business suppliers costs are off the “roof” and the Fed has done more damage by raising rates too fast (increased mortgage rates by over 100% in less than a year).
Feeling the hurt (which the Fed said will happen) is only the beginning. Supplies are starting to dwindle in stores, the holidays are here, airfare up over 25% and healthcare will rise by almost double digits again next year.
Maybe relief by next summer. The rex wave is coming but there will be no compromise. It will be a switcheroo to whats happening now.
Jan 6 congressional inquiries will become Hunter inquiries.
Republican election fraud will become Democrat election fraud.
Remember Dems going after and 2 impeachments of Trump.
The same with Joey will start. He is not fit to be Prez.
Tit for tat. All the while, the country will continue to feel the hurt while agendas prevail.
Very sad. Hunker down folks, its going to be rough.