New Home Prices Plunge In Still-Distorted US Housing Market

Last week, I spent some time documenting what I called the "great American housing bifurcation." It's a simple narrative. High rates are keeping sellers, but not necessarily buyers, at bay, creating a mismatch between resale inventory and demand for existing homes. That, in turn, is herding would-be buyers into new construction, because that's all there is for sale. Of course, higher rates deter buyers too, but the difference is that in many cases, buyers have to buy, or at least need to buy.

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5 thoughts on “New Home Prices Plunge In Still-Distorted US Housing Market

  1. My personal data point on distorted housing and service-sector inflation still being “hot”: My sibs and I are putting a house on the market in rural Idaho. I calculated the tradeoff on local handyman labor versus travelling there to work on it myself. The breakeven point was Day 2…. If any more than one day of work was needed, it made financial sense for me to fly across the country, rent a car, and stay in a hotel as long as needed rather than hire a common handyman locally. This realization definitely “distorted” my brain.

    I hadn’t realized how valuable I’ve become 😉

  2. Cheaper to buy used equipment and materials you never thought you would own or purchase if you have the time and capacity. I am out $1500 and can resale the tool vs $8700, but also several weeks of disruption vs a couple of days. Use the quotes to fight your tax assessment.

    1. Yes, I’ve taken this as an excuse to buy all kinds of tools and gear. Instead of stressing over the market all evening, I don my PPE and spend a restful evening on the scaffold stripping paint and listening to music. It’s kind of nice. I’d rather pay someone, but decline to bend over.

      1. I have lost some weight since my pro clothes career ended. I had a funeral to attend. I like going to the Goodwill to look for CDs on occasion and one trip I decided to check out the clothes, for the funeral. For $35 I got a pair of shoes, a tie, a very nice shirt, a belt, and a nice pair of pants, and I mean well made nice. I might have felt a little embarrassed about that, but the fact is it was the quickest and most convenient single outfit shopping experience i can remember.

NEWSROOM crewneck & prints