Posted originally on the conservative tree on July 18, 2022 | Sundance
As expected, the latest National Association of Home Builders survey [Data Here] shows the July confidence opinion of industry professionals now reflects the largest single month drop in the history of the survey (removing pandemic impact).
On a macro level, home values peaked in April/May and have been dropping ever since. Mortage rates have increased borrowing costs and inflation is squeezing home buyers out of their savings and/or down payment. Home sales have stalled in multiple regions and the prices of existing homes for sale are dropping, quickly. Many home building contracts are being cancelled and builders are now dropping prices in order to retain prior sales.
(Via Forbes) – […] Builder confidence in the market for new homes posted its seventh consecutive monthly decline in July, falling 12 points to 55 for its second-biggest single-month drop in history, according to the NAHB/Wells Fargo Housing Market Index released Monday.
[…] In emailed comments, Pantheon Macro chief economist Ian Shepherdson said confidence has “further to fall,” noting that Federal Reserve Chair Jerome Powell last month alluded to the housing market’s “complicated situation,” saying potential home buyers “need a bit of a reset” as mortgage rates normalize at higher levels after remaining historically low during the pandemic.
“This is a meltdown,” says Shepherdson, noting home prices should soon start to drop and warning: “Pretty soon, anyone who has bought a home in recent months will be sitting on a loss.” (read more)