It may come as a bit of a shock to those who have been following the creeping freeze in housing transactions as the bid-ask spread grows to monstrous proportions, leading to a record crash in pending home sales…
While existing home sales slipped to cycle lows in December, new home sales bounced and this morning analysts were surprised to see pending home sales rise 2.5% MoM (against expectations of a 1.0% decline), and November’s decline was revised higher…
Record inflation, trouble on Wall Street, a hemorrhaging bond market … And a wave of corporate layoffs to start off 2023 …
US existing home sales dropped for the 11th straight month in December (-1.5% MoM – slightly less than expected thanks to downward revisions of previous months), leading to a record 34% drop year-over-year (worse than the worst drop during the Great Financial Crisis)…
Rents Rising Faster Than Home Prices in Almost Half the U.S.; Both Renting and Owning Unaffordable for Average Workers Throughout the Country; Renting Still More Manageable in Vast Majority of Markets
The latest evidence that Fed Chair Jerome Powell’s most aggressive interest rate hikes in a generation and spiking mortgage rates might trigger a housing “reset” is the latest earnings report from KB Home, one of the nation’s largest publicly traded homebuilders.
In times of economic uncertainty, assets that are REAL and ESSENTIAL tend to be the most resilient … That’s one of the reasons we love real estate … Everyone needs a place to live …
Home prices have started to correct as interest rates rose sharply in 2022. However, the real problem for home prices is still coming in 2023 as the standoff between sellers and buyers comes to a head.
Tl;dr: Headline and Core CPI printed ‘as expected’ (which is likely disappointing for the whisper numbers and remember the last CPI printed ‘cooler than expected’). Goods inflation continues to slow but Services inflation continues to soar (highest in over 40 years). Shelter costs continue to soar.
Property management firm RealPage published new data that shows demand for US apartments began “evaporating” as early as last summer as the highest inflation in a generation crushed consumer confidence.