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Monumental Surge In US Home Sales Is Sideshow In Bank Drama
Surprise! The two-month re-acceleration in US pending home sales translated into a blockbuster month for sales of existing homes.
The "surprise" bit is sarcasm, obviously.
Notwithstanding a rough December for equities, financial conditions eased materially in Q4, or at least according to market-based measures, and during the same period, mortgage rates fell ~90bps from 2022's highs.
Predictably given pent-up demand, that lured buyers from the sidelines and, alongside unseasonably warm weather
According to an article I recently read, Goldman Sachs estimates that 28% of US homeowners have mortgages with interest rates below 3% and 99% of US homeowners have mortgages with interest rates below 6%.
The only way that at least 28%, if not more, of the existing housing stock in the US will turn over is if market rates go down or a homeowner is forced/highly compelled to sell.
E-N : Totally off topic, but we share an interest in organizing the immigration we need to supplement our workforce. Pls check out Florida Senate Bill CS/SB 1718: Immigration 2023
Thanks, I read the bill. Unfortunately, the states are being forced to establish immigration policies due to our federal government’s refusal to legislate this issue.
At a national level, we need organized, lawful immigration that matches the employment needs of the USA with immigration policy and appropriate funding for immigration.
The existing points-based Canadian system provides a good roadmap. A points-based system that assigns points for English language abilities, prior work experience, possession of work skills currently needed in the US, education levels, prior visits to US, existence of friends/ relatives already established in the US who can assist with assimilation, and for lack of a criminal record would put our country on the right track (imo).
My personal belief on illegal immigrants already in the US, is that we need a pathway for these existing employed/employable illegal immigrants. This group of people, by and large, have taken extraordinary measures and have risked everything to get to the USA. The fact that they made it, says a lot about their resolve, their inner strength and their willingness to work hard/endure extraordinary difficulties to have the opportunity for a better life. Our country absolutely needs more people with these types of personal characteristics.
E-N: Could not agree more with all of your points. Immigrants are in general a gift to their new society, exhibiting qualities that more and more Americans seem to lack. Combine that with the increasing dearth of new marriages (and even dating), and we are following Japan, South Korea, Russia and China into a long term population decline.