I Can Get You In Something Used For $407,600

I Can Get You In Something Used For $407,600

It could've been worse. Existing home sales fell last month, the first of this week's key US housing data showed. But the decline was no larger than expected, a small miracle considering how quickly financing costs are rising. Sales fell 3.4% to a 5.41 million annual pace, the slowest in almost two years, but in line with consensus. The range of estimates, from more than four-dozen economists, was 5.2 million to 5.92 million. April's drop was revised slightly lower. May marked the fourth co
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4 thoughts on “I Can Get You In Something Used For $407,600

  1. The commentators who focus on inventories are spot on. Until you get a large increase in inventories in a particular market prices will hang in for that market. The unhealthiest housing market would show high correlation around the country. If you see high correlations and rapidly rising inventories watch out. Otherwise you will see dispersion in returns around the country. It is a good bet that housing will cool off in most markets. That may not mean a crash- it may mean flat prices – and given inflation as it stands now that would mean real (inflation adjusted) prices go down. That would actually be a kind result.

  2. “…more clues about the impact of sharply higher rates on buyer psychology.” I’m also curious to see the impact on seller psychology. If you’re locked into a relatively low rate, would you want to sell into this market unless you have the cash to buy something outright? I’d also note that 25% of sales were all cash. I don’t know how that compares to historicals, but I’d guess that’s pretty high.

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