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jpak

(41,758 posts)
Sat Oct 26, 2019, 12:47 PM Oct 2019

The U.S. Housing Market Crash Is Officially Here

https://www.ccn.com/u-s-housing-market-crash-officially-here/

The US housing market has been losing its wheels despite the Federal Reserve’s rate cuts, and the severity of the problem came to the fore when the Commerce Department released its latest data.

Sales of new single-family homes in the US fell in September by 0.7 percent to 701,000 units. The August reading also witnessed a downward revision to 706,000 units as compared to the originally reported 713,000 units.

But what’s alarming is that the monthly price decline was the biggest seen since September 2014 despite tight inventories, a sign that a US housing market crash is here. The median price of a new house slid 8.8 percent year over year in September to $299,400. The month-over-month decline came in at 7.9 percent.

The drop in home prices seems a tad surprising given the tight inventory available on the market. The National Association of Realtors (NAR) recently reported that in September, there were just 4.1 months of existing home inventory. This was lower than the 4.4 months of inventory that was available a year ago and far lower than the ideal inventory level of 6 to 7 months.

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The U.S. Housing Market Crash Is Officially Here (Original Post) jpak Oct 2019 OP
Negative interest rates here we come. roamer65 Oct 2019 #1
Appears this story of tight Inventory needs Wellstone ruled Oct 2019 #2
Home sales, farmers, ranchers, manufacturers, importers/exporters, and just ... SWBTATTReg Oct 2019 #3
+1000 Sherman A1 Oct 2019 #5
This is what we always get Andy823 Oct 2019 #4
Housing prices are still highly inflated... Wounded Bear Oct 2019 #6
TRump needs to own this! Joe941 Oct 2019 #7
Where I live I see plenty of homes and closed business properties for sale. nt Blue_true Oct 2019 #8
New and used houses are selling like crazy in my neighborhood. Mosby Oct 2019 #9
 

Wellstone ruled

(34,661 posts)
2. Appears this story of tight Inventory needs
Sat Oct 26, 2019, 12:57 PM
Oct 2019

exploration. What they do not tell you is there is a shortage of 2-3 bedroom houses in some areas. But the real kicker is there is a ton of 4-5+ bedroom houses that nobody wants.

All about the P.R. by your local board of Realtors. After all it is a Commission based system.

SWBTATTReg

(22,144 posts)
3. Home sales, farmers, ranchers, manufacturers, importers/exporters, and just ...
Sat Oct 26, 2019, 01:31 PM
Oct 2019

everyone that's not a 1%er, all are suffering from stagnant wages over the last 40 years, inflation eating away our earning power, low interest rates on our CDs, idiotic trade issues being solely caused by rump, and vast uncertainty about markets for all types of goods, all are contributing to this overall decline.

And the 2017 tax cut and jobs bill was a big lie. It was simply like one of the repubs said, we want to reward our donors. All it did was channel more and more money to the 1%ers, which then gets either parked and not spent, reinvested in the more higher and higher stock market (artificially increasing market values to way outside normal PEs, and making it harder for others to invest in the markets on an ongoing basis. Also another negative impact on this type of market...insane valuations of IPOs (new stock issues) where the issuing company literally will never make the earnings that the initial PE assigned to the new stock issues (WeWork is an example).

I suspect things will now all start to accelerate faster and faster, each area of slowdown feeding on other areas of economic downturn, thus things will get worse, not better. It's no surprise really, this being an up economic cycle of over 10 years or so, and of course like I said earlier, rump is not helping one bit.

Andy823

(11,495 posts)
4. This is what we always get
Sat Oct 26, 2019, 01:41 PM
Oct 2019

when republicans are in charge, and trump has been the worst of the bunch, even beating out George W. who crashed everything the last time we had a republican in the W.H.

Mosby

(16,320 posts)
9. New and used houses are selling like crazy in my neighborhood.
Sat Oct 26, 2019, 06:17 PM
Oct 2019

Lots that have sat empty for decades are finally being developed.

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