Home Sales Fell for the Ninth Straight Month in October. The Bottom May Be Near, One Economist Says.

[dasari4kntr]

Home sales fell in October for the ninth month in a row. But there could be an end in sight to the declines as mortgage rates ease, according to the chief economist of a trade group.

Existing-home sales in October fell 5.9% from September to a seasonally-adjusted annual rate of 4.43 million, according to National Association of Realtors data released today. While the drop was less severe than FactSet consensus expectations had anticipated, sales were 28.4% below year-ago levels. With the exception of May 2020, the rate of sales was at its lowest level since December 2011, according to historic data.

The drop in home sales in October as mortgage rates rose was “not a surprise,” National Association of Realtors chief economist Lawrence Yun said on a call with reporters. The average rate on a 30-year fixed-rate mortgage passed 7% for the first time since 20 in October, according to Freddie Mac data, adding to the cost of financing a home.

Sales have declined significantly this year, but some relief in mortgage rates could mean that an end is in sight, Yun said in a statement. “Mortgage rates have come down since peaking in mid-November, so home sales may be close to reaching the bottom in the current housing cycle,” Yun said.

Mortgage rates measured by Freddie Mac this week showed the greatest week-over-week drop in 40 years as investors reacted to cooler-than-expected October inflation. Mortgage rates could come down further if the abnormally-wide spread between government borrowing rates and the 30-year fixed rate closes, Yun added on the call.

“Hopefully this large abnormal spread that we are currently experiencing will dissipate by spring months,” Yun said, adding that mortgage rates could be between 5.5% and 5.8% if the spread is reduced. Since real estate deals take some time to close, sales could remain soft for a few months, the economist said, but could strengthen early next year, assuming mortgage rates have peaked.

Prices in October remained higher than one year prior, but such growth continued to decelerate. The median home in October sold for $379,100, up 6.6% from last year.

Prices next year will be strongest in areas with job growth and affordable homes, Yun said, while pricier markets with limited job growth will see the greatest declines. Yun says he expects half the country will experience price declines of about 5%, while the other half will see price growth of 5%.

Bidding wars are still occurring due to relatively low inventory, Yun said. Inventory at the end of October was 1.22 million units, the trade group said, down 0.8% from a year prior. At 21 days, properties spent three more days on the market than in October 2021.

“Some properties are getting multiple offers, but most properties are staying on the market a little longer,” Yun said, adding that homes that price reductions and days on the market are correlated.

[Telugodura456]

what bottom - why will there be bottom ? a home is investment in america - most dont "need" it. Apartments themselves are nice enough.

Idhe china lo intha aithe they talk using words "collapse" "crash" ..ikada matuku bottom is near, rebound is near.

[Gaali_Gottam_Govinda]

Bottom is near aaa....... The party has not even started....... 1 Million Job losses in 2023-2024 will be the start of Housing prices decline......... 20-30% decline in pandemic WFH cities........ North East, Chicago and SFO are somewhat safe. they will go down less. 

[dasari4kntr]

13 minutes ago, Telugodura456 said:

what bottom - why will there be bottom ? a home is investment in america - most dont "need" it. Apartments themselves are nice enough.

Idhe china lo intha aithe they talk using words "collapse" "crash" ..ikada matuku bottom is near, rebound is near.

i am not big fan of aparatment culture...

natural resources like ground water..etc are shared by 100 floor families...is not good for long run...

and also..coincidently i saw this tweet today..while you mentioning... 

i dont know the how much truth in this video...just sharing here..

 

 

 

[Manishican]

1 hour ago, Gaali_Gottam_Govinda said:

Bottom is near aaa....... The party has not even started....... 1 Million Job losses in 2024 will be the start of Housing prices decline......... 20-30% decline in pandemic WFH city........ North East, Chicago and SFO are somewhat safe. they will go down less. 

Not possible. This is a fed induced recession. It can flip the switch easily 

[Telugodura456]

1 hour ago, dasari4kntr said:

i am not big fan of aparatment culture...

natural resources like ground water..etc are shared by 100 floor families...is not good for long run...

and also..coincidently i saw this tweet today..while you mentioning... 

i dont know the how much truth in this video...just sharing here..

 

 

 

maree racist proipoganda ..heavily doctored images ..gatra :

https://www.cnn.com/2022/11/14/investing/china-real-estate-crisis-over-rescue-plan-intl-hnk

 

China’s real estate crisis could be over. Property stocks are soaring

By Laura He, CNN Business

Published 1:28 AM EST, Mon November 14, 2022

[Thokkalee]

There are not many foreclosures.. avi start ayina couple of years ki bottom reach avuddi.. many ppl are sitting on cash and waiting for the right time.. 

next year layoff tho ppl will lose jobs and foreclosures start avtayi.. 2025 varaku no bottom.. 

[dasari4kntr]

30 minutes ago, Telugodura456 said:

maree racist proipoganda ..heavily doctored images ..gatra :

https://www.cnn.com/2022/11/14/investing/china-real-estate-crisis-over-rescue-plan-intl-hnk

 

China’s real estate crisis could be over. Property stocks are soaring

By Laura He, CNN Business

Published 1:28 AM EST, Mon November 14, 2022

may be propaganda ayyindochhu..

i was not sure...i just shared after seeing your comment ...