REAL ESTATE Home sales fell nearly 6% in July as housing market slides into a recession

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builders are not building,”

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They are still building in certain areas... I did notice one of the big builders in Huntsville has consolidated and pulled out of the area...

i have been working with a local builder here in baton rouge for 2 years. Filed a phase 2 on a subdivision late last year. Hasnt sold a house in 6 months... it's going to get worse

What about all those experts who kept talking about the housing shortage and how this type of thing wouldn't happen....?

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it's going to get worse

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Blackrock will purchase for pennies on the dollar.

Queue the “Great time to buy…buyers market” Facebook posts

It hasn’t slowed down in Hot Springs. At least the condos haven’t.

Lemon Party will likely be out with a scorching case of monkeypox soon.

I am a first time home owner as of 2 years ago. Is this good for me because I got in at the right time or should I be worried in the event I ever wanted to sell?

The housing market cooling off quickly was to be expected (hint: it's only going to get worse for at least the next 6 months). The Fed still has at least another .5 of rate-raising before the end of the year (to hit their target range of 3%-4%).

As interest rates rise (not just long-term bank loans like mortgages and car loans, but credit card rates), people are finally going to be forced to change their lifestyles. Starting in Q1 2021, Consumer Debt has picked up speed in its growth.

When looking at Nominal GDP, spending continued to increase. When looking at Real GDP, it shrank both in Q1 and Q2 of this year. What this means is people are spending more money but getting fewer things in return.

This year both home foreclosures and vehicle repossessions are up.

This is all due to not just to high inflation and fuel/energy prices, but the compounding effect of their all being high and staying high for a long time. This doesn't look to change anytime soon (example: don't expect CPI to drop below 5% until sometime next year, hopefully Q1).

So you have rising interest rates... LINK



High and/or rising energy prices ( natural gas, coal and heating oil, all of which are multiples of what they were just pre-COVID)...

Continued high oil/ gasoline prices even in the face of SPR draining coming to an end...

All of this taken together means this is just the end of the beginning. This Fall will see us well and truly in deep economic shite.

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but values increased 10% YoY

market is so crazy right now especially with interest rates fluctuating all over the place on the fixed mortgage front

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That's how much demand there is out there, I think it's also a testament to how much extra liquidity still remains in the overall economy.

Similar to how oil/gasoline prices got so high as to impact demand (thus driving price down as supply increased), we're sort of at that point with housing. 30yr mortgage rates have been acting squirrely but I think that's because a lot of MBS investors see inflation as being on the wane.

If foreclosures continue to increase (and there's no reason to not expect them to, especially on anything purchased within the last 4-5 years), I would expect those loan rates to increase. The further they move above 6%, the sooner we see that YoY% start coming down.