Housing Market Cools Off, Enters Housing Recession | Eastern North Carolina Now | The last few years have seen an exploding housing market, with the costs of homes surging amid low inventory, but now, experts say the market has taken a turn, and the U.S. has now entered a housing recession.

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    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Charlotte Pence Bond.

    The last few years have seen an exploding housing market, with the costs of homes surging amid low inventory, but now, experts say the market has taken a turn, and the U.S. has now entered a housing recession.

    "List prices are getting cut but in part I think because there's a lot of demand still for housing demographically and not enough supply of housing we haven't seen prices go down," Ryan Schneider, CEO of Anywhere Real Estate, said.

    This is not quite a housing crash. Experts are calling this a housing recession, but massive price drops are unlikely because inventory is still low. However, there's a consensus that the market is cooling down. The U.S. just came out of a hot housing market. Home prices were sky high and interest rates were low, and people were looking to buy at incredible rates.

    Now, interest rates are significantly higher, and the market is responding. Some buyers are canceling their contracts because of interest rates. Existing home sales dropped by 5.9% in July from June, which made it the sixth month in a row of a drop, and that was a 20% decline from the year before.

    While first-time homebuyers normally make up around 40% of sales, last month they only made up 29%, which reveals that more people might be hesitant to enter the market for the first time.

    New construction is slowing down as well. Sentiment among builders dropped to negative levels in August after eight months of steady decline according to one prominent metric, the National Association of Home Builders/Wells Fargo Housing Market Index.

    The Chief Economist at the National Association of Home Builders Robert Dietz said there's now a housing recession caused by "[t]ighter monetary policy from the Federal Reserve and persistently elevated construction costs."

    Single family home construction was down almost 19% in July compared to last year and building permits were down 12%, which typically resemble future projects.

    Housing prices are another factor to watch. Typically, housing prices go up on average between June and July because a lot of families like to move when their kids are out of school for the summer. However, home prices went down almost 1% from June to July, according to Black Knight, which was the first monthly drop in three years - and that was the biggest single-month decline in costs since January of 2011.

    Home prices were still higher in July of this year than July of last year, but most of that increase happened in the early part of this year before mortgage interest rates went up. Home prices are dropping much more significantly in certain areas as well. They dropped 10% recently in San Jose, California. Seattle, San Francisco, San Diego, L.A., and Denver all saw drops, too.

    Andy Walden, vice president of enterprise research and strategy at Black Knight, says that more price corrections are probably coming, so home buyers and sellers will likely continue to watch this market and see where it goes.

poll#162
In what may be the most divisive period in modern American History, even more divisive than the turbulent sixties due to today's lack of patriotism, consider what are the major catalysts causing so much of this calamity of conflict, and vote: What most instigates the division of America, on this day September 20, 2022?
  Racism within our society
  Sex realignment to the detriment of our society.
  Biden /Harris Wide Open Southern Border Policy for the Demographic Upheaval of OUR Constitutional Republic
  Rampant Crime in Democratic controlled cities, and the possible contagion elsewhere
  Covid Pandemic, and its mishandling at the political, and bureaucratic levels.
  The unresolved questions /allegation regarding the flawed 2020 General Election
  January 6th Riot or "Armed Insurrection", depending upon patriotic perspective
  Joe Biden as Divisive Leader; Ineffective and Corrupt Executive
  Failed Education Industry, from an overall perspective, regarding all levels of education.
  Propagandistic Media in complete conflict with the First Amendment's guarantee of Freedom of Speech, and the awesome responsibility of a Free Press..
  "Orangeman Bad!"
  Bureaucracy rushing to a behemoth size, its unjustified expense, and far too often overreach.
  The Weaponized Deep State for political purposes
  A secular ambivalence to all that is real.
  Record number of overdose deaths from opioids and now Fentanyl
  Biden Administration's disastrous Foreign Policy
  Bidenflation /supply chain failure inevitably evolving into stagflation and recession.
  "Ultra MAGA Extremists" freely speaking louder AND LOUDER!
375 total vote(s)     What's your Opinion?


poll#154
Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?
  Yes, the Democrats have a bold plan, yet to be revealed, to save us.
  No, there will have to be a complete undoing of the damage done by these Democrats.
  I can't do simple math, so how am I to understand the concept of basic economics.
835 total vote(s)     What's your Opinion?

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