US Home Prices Scale New March Record As Affordability Crisis Spirals
Existing home sales retreated as expected in March, snapping a two-month run of gains.
That's according to the last of this week's macro data out of the US.
The 4.3% decline reported by the NAR on Thursday was basically consistent with expectations and underscored the notion that 2024's creeping increase in mortgage rates, when coupled with near record-high home prices, might've tempered buyers' seasonal joie de vivre.
I don't know why I say "might've." If you want to buy something but ultima
The GSE’s mission is providing liquidity, stability and affordability to the housing market; yet the housing market is at a point where most Americans can’t afford the price or the rate. Maybe there just isn’t any appetite or role for them to play in the secondary mortgage market with this type of product. I would’ve figured that if they could transfer the risk away from developer’s then that would free up their balance sheet to continue building more homes = more liquidity / stability / affordability. Idk, seems like there is opportunity somewhere for Freddie / Fannie (or some entity) to connect home owners with developer’s.
I think this situation is yet another reason for increased demand (compared to historical amounts) for food, travel, entertainment, etc. which is therefore resulting in even more inflation in these categories.
There is a shift happening in spending patterns because, as stated in this post, a certain segment of our population has simply given up on trying to save for a down payment and purchase a home. So any earnings that would have been allocated to “buying and then owning a home” are now being spent on “enjoying oneself”. Delaying gratification only works if there are reasonable odds of the “gratification” occurring. I am definitely a proponent of delayed gratification, but I can’t look my adult twenty something children in the eye and tell them that they should have home ownership as a goal- especially in the cities where they are currently living!
It seems as you look at the parties in the housing markets they are all focused on higher housing prices to make bank. It appears to be a rigged market however the rigging is not it seems one central factor but a community with a common zeitgeist. Which is unfortunately the primary characterization of a bubble. Bubble come and bubbles implode.