may also hit consumer confidence when it comes to house purchases. So there are other negative omens too., there are now more homes for sale and it’s taking longer to sell them. This is creating an overhang in the housing market. We’re not at crisis levels. Supply is just back to levels from 2020, and time to sell is similar to the worst of 2021.
However, it’s also worth the reality check that we are only just starting to see house prices soften and they remain up year-on-year. Also, house prices tend to be fairly stable. An extremely bad housing market, historically speaking, one where prices fall about 10% such as in 1970s or during the financial crisis of 2008-9. So compared to the stock market, negative swings in house prices are fairly small.
House prices have had a very strong run recently. There are a lot of good reasons why that may be starting to moderate. Although history reminds us that U.S. house prices do tend to be fairly stable. That time in the 1980s when mortgages spiked similar to today? Well house prices only had one quarter of price declines for that entire decade, and that was under a 1% decline.
So yes, house prices may no longer rise double-digits. In fact, a lot of signs suggest things in housing will get worse. However, do remember that what is really bad for the housing market is seldom amounts to even a single-digit decline in house prices, if history is any guide.
Uh oh, the left is frantically coming up with a re-redefinition of recession.
Lol, wait till the unemployment begins to tick up, mortage defaults sky rocket as people who bought a houses that raised 40% in value over 18 months with the highest mortgage rates in a decade begin to blame the government
Are we not already, by definition, in a recession? Two consecutive quarters of negative GDP this year.
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