Build-to-Rent Housing Leader | Community Builder | Storyteller Using Strategic Data | Life-Long Learner
Edited: I read an interesting point today that the media headlines may be distorting the housing picture. The national median existing-home price decline of 0.9% in March from a year earlier to $375,700 was the biggest year-over-year price drop since January 2012, NAR said. Median sales price does not tell us very much about home values. By definition the median is just the middle number. It is possible the median could be skewed if the mix contains a larger quantity of lower priced homes. We are better off using other measures like the Case-Shiller Index. US Median home prices are falling. The volume of existing home sales is also falling. Even though this does not bode well for the busy spring selling season, this is healthy after the unsustainable run we saw in house prices after Covid. We are seeing this due to rising mortgage rates, high home prices, a cooling economy with the potential for a recession on the horizon, and persistently low inventory frustrating buyers. I am currently trying to buy a house and I am most frustrated by the low inventory on the market. Housing starts fell 0.8% in March from February, the Commerce Department said this week. Residential permits, which can be a bellwether for future home construction, dropped 8.8%. "U.S. existing-home sales decreased 2.4% in March from the prior month to a seasonally adjusted annual rate of 4.44 million, the National Association of Realtors said Thursday. March sales fell 22% from a year earlier." The housing market’s slowdown is now starting to weigh on prices, which have fallen on an annual basis for two consecutive months for the first time in 11 years. The national median existing-home price decline of 0.9% in March from a year earlier to $375,700 was the biggest year-over-year price drop since January 2012, NAR said. Median prices, which aren’t seasonally adjusted, were down 9.2% from a record $413,800 in June. Home prices in the western half of the U.S. experienced some of the biggest gains for many years but are now falling the fastest." Thank you The Wall Street Journal for reporting. Tell me in the comments below 👇your comments on the housing market. Please like 👍, comment below 👇, or share 👉. Click the 🔔 in my profile to get notified of my posts. And follow me for more content like this. #singlefamilyrentals #buildtorent #buildforrent #realestate #housing
Home prices are "correcting"... not "falling". Most sunbelt regions will have a floor on prices bc no inventory. Still a lot of buyers. Smaller homes? Yes. But the employment will need to get a LOT worse (like, several months of horrible job growth) for it to have a significant impact on demand.
The home prices in PNW are not falling. The values are still high. Homes have been on the market longer and some have been reducing their price because of that.
Higher rates . . . lower prices . . . more room to negotiate.
home prices are not 'falling'.
I wonder if it keeps sliding, or this is all we see? Daniel Mandel, MBA
Corporate escapee
1yThis is just the beginning. While there are many folks on the sidelines waiting to buy, how many of them have decent down payment and stable employment? Most likelythese are high income white collar workers. The job losses have started primarily been in the highly compensated tech sector, which tend to be concentrated in specific geographies ( San Francisco, Seattle, Austin, NYC, Boston). These workers also tend to have a high portion of their compensation in stock so their job losses won’t hit the housing market immediately. There is a lag effect, Allowing these workers more time before they must sell. Since Housing is priced at margin the declines thus far in these tech job housing market will continue. At this point younger tech workers and non tech folks who’ve been it hard by inflation and have moved away. However, now white collar job losses have creeped into other sectors of the economy. We are entering stagflation.