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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe 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 Reserves 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 whats 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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roamer65
(36,745 posts)The currency war is about to kick into hyperdrive.
Wellstone ruled
(34,661 posts)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)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.
Sherman A1
(38,958 posts)Andy823
(11,495 posts)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.
Wounded Bear
(58,673 posts)even after the '08 crisis.
Joe941
(2,848 posts)Blue_true
(31,261 posts)Mosby
(16,320 posts)Lots that have sat empty for decades are finally being developed.