‘Housing market has entered a recession’: Home sales plummet in ominous sign for economy

[mystery-ak]

‘Housing market has entered a recession’: Home sales plummet in ominous sign for economy
October 22, 2022 | BPR Wire

John Hugh DeMastri, DCNF

Sales of existing homes fell in September for the eighth month in a row, as historically high mortgage rates pummel demand for homes, the National Association of Realtors (NAR) announced Thursday.

The 1.5% decline from August contributed to a 23.8% slide compared to September 2021, as the median existing-home sales price rose 8.4% from last September, from $355,100 to $384,800, the NAR reported. NAR Chief Economist Lawrence Yun said that high mortgage rates were contributing to reduced demand, particularly in “expensive regions of the country.”

“The housing market has entered a recession before the overall economy does,” said Nancy Vanden Houten, lead U.S. economist at economic forecasting firm Oxford Economics, according to the Wall Street Journal Thursday. “We look for housing to be a drag on growth, really, for the next several quarters.”

https://twitter.com/NAR_Research/status/1583097186786893824

A significant portion of current homeowners have secured mortgages under 4%, making them less likely to sell in the current market, the WSJ reported. Demand for new mortgages has fallen by 38% since last year, after a significant portion of mortgage holders refinanced to take advantage of low rates in 2020 and 2021.

The 30-year fixed mortgage rate hit 6.94% last week, their highest level since 2002, in response to the Federal Reserve’s aggressive campaign of interest rate hikes designed to combat inflation. A weaker housing market could help the Fed achieve its goal of combating inflation, as a weakened housing market drags down other related industries, such as lumber, plumbing, construction and other goods and services, the WSJ reported.

The Fed is considered likely to continue raising interest rates at its aggressive pace, and comments from top Fed officials have signaled the central bank’s unwillingness to lower rates until inflation has been clearly contained.

https://www.bizpacreview.com/2022/10/22/housing-market-has-entered-a-recession-home-sales-plummet-in-ominous-sign-for-economy-1299369/

[roamer_1]

@catfish1957

You get a bow and an 'I told you so'...

BTW, the kid's deal snuck by... by the skin of his teeth. He's moving out this weekend with a fat pocket full of cash. the turnkey is Thursday and the contract is in stone...

He is already living on his property - got water in and built a 2 car garage to hold his crap. Electricity and cable are in... and the 5th-wheel is skirted and ready for winter. The only thing sideways is the septic, and that is underway, and should be resolved by the end of the month.

So he's done. Lost a bit in the market fall, doesn't have enough to build a house. But then he's sitting there all winter and won't be building until summer... All winter with no mortgage and no city taxes and absolutely debt free, so by the time he is building, especially with building supplies crashing after the real estate market dries up... he will be positioned by summer to build a modest house out of pocket.

I am SO proud of him!

[catfish1957]

@catfish1957

You get a bow and an 'I told you so'...

BTW, the kid's deal snuck by... by the skin of his teeth. He's moving out this weekend with a fat pocket full of cash. the turnkey is Thursday and the contract is in stone...

He is already living on his property - got water in and built a 2 car garage to hold his crap. Electricity and cable are in... and the 5th-wheel is skirted and ready for winter. The only thing sideways is the septic, and that is underway, and should be resolved by the end of the month.

So he's done. Lost a bit in the market fall, doesn't have enough to build a house. But then he's sitting there all winter and won't be building until summer... All winter with no mortgage and no city taxes and absolutely debt free, so by the time he is building, especially with building supplies crashing after the real estate market dries up... he will be positioned by summer to build a modest house out of pocket.

I am SO proud of him!

Congratulations......

Got to agree.  Some of the most satisfying moments as we age is seeing our kids make shrewd and grownup smart financial decisions.

OTOH, some of the most disappointing are when their spouses are steering them wrong on calls.  Hope he stands with his principles and stays the course.

[roamer_1]

Congratulations......

Got to agree.  Some of the most satisfying moments as we age is seeing our kids make shrewd and grownup smart financial decisions.

OTOH, some of the most disappointing are when their spouses are steering them wrong on calls.  Hope he stands with his principles and stays the course.

See, that's where he shines... because SHE shines. He married an extremely practical Alaskan hilljilly. So normally she is gardening and canning and putting up case goods... She knows how to sew, raises chickens, and is a pretty good mechanic - She works along side him in the shop often. She's a wizard in the kitchen and keeps a neat house... old skool.

And she works the back end at a corporate bank office. She has a wicked sharp pencil.

And he bounces everything off her.

I am every bit as proud of her. If I said I love her like a daughter, that ain't it by half - SHE IS my daughter (in all but the blood sense).

She's one to ride the river with. And they'll do. 

[catfish1957]

See, that's where he shines... because SHE shines. He married an extremely practical Alaskan hilljilly. So normally she is gardening and canning and putting up case goods... She knows how to sew, raises chickens, and is a pretty good mechanic - She works along side him in the shop often. She's a wizard in the kitchen and keeps a neat house... old skool.

And she works the back end at a corporate bank office. She has a wicked sharp pencil.

And he bounces everything off her.

I am every bit as proud of her. If I said I love her like a daughter, that ain't it by half - SHE IS my daughter (in all but the blood sense).

She's one to ride the river with. And they'll do. 

 

Very lucky.

In one of my cases, my wife has to remind me what seems monthly that we don't choose your children's spouse.

And I'll just leave it at that.