The Briefing Room
General Category => Economy/Business => Topic started by: Kamaji on August 19, 2022, 02:42:28 pm
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Falling US home prices ‘still nowhere near the bottom:’ economist
By Thomas Barrabi
August 18, 2022
A downturn in US home sales and prices is likely just beginning, a prominent economist warned on Thursday.
Ian Shepherdson, the chief economist at Pantheon Macroeconomics, said in a note to clients that the housing market’s recent slump is “still nowhere near the bottom, especially for prices.”
His forecast came after existing home sales dropped 5.9% to a seasonally adjusted annual rate of 4.81 million units in July, according to the National Association of Realtors.
Existing home sales have fallen for six straight months and have hit their lowest level since May 2020. The slump has coincided with a surge in mortgage rates over the last year, which compounded the affordability challenge for would-be homebuyers facing steep sale prices.
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Source: https://nypost.com/2022/08/18/falling-us-home-prices-still-nowhere-near-the-bottom-economist/
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The saddest part of this whole saga, is based on recent data I have seen, is that when you look at the 25th-75th percentiles of United States households (Net Worth), that 70% of said net worth is tied up into the equity of their homes.
I have gone on record that I believe that the Biden economy may cause real estate prices to fall 50%- 75% based on location and circumstance. Deduct 50-75% of that 70%? We are talking 3rd world poor.
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Realtors had a few easy years. Now, they'll have to work for their commissions.
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Realtors had a few easy years. Now, they'll have to work for their commissions.
I think it will be worse than that. With sales and prices plummeting, I see quite a shakeup coming in their industry.