The housing market is basking in a deluge of positive data. There’s still one statistic that could spell trouble for the recovery in residential real estate. If this trend doesn’t reverse soon, resilient demand alone might not be enough to support home prices. There’s no shortage of optimism in the U.S. housing market today. Home…
New housing starts have hit a five-year low, while mortgage rates reached another record low last week. These two factors could lead to a reduction in the housing supply, which in turn will push up prices. As with the financial crisis of 2007-8, the downturn will likely have a long-term negative effect on home building.…
U.S. housing market demand rose for a fifth consecutive week. The residential “Purchase Index” has recovered to 2019 levels. The sector faces headwinds, but it’s looking less and less like home prices will crash in the immediate future. It’s still too early to say the housing market is out of the woods, but apocalyptic warnings…
New homes in the U.S. are being listed at a discount. The lack of liquidity could force more sellers to list their properties at lower prices. Uncertain times ahead for the U.S. housing market as the coronavirus wrecks the economy. The novel coronavirus pandemic is about to wreak havoc on the U.S. housing market. That…
Elon Musk listed more mansions for sale on Zillow Wednesday. The tech billionaire says he’s unburdening himself of material possessions. It’s hard to ignore Musk’s timing – and what it says about the U.S. housing market. Elon Musk is making good on his promise to sell all his possessions, listing more of his California mansions…
The Federal Reserve’s Survey of Consumer Expectations shows a deterioration in Americans’ view of the economy. For the first time since the financial crisis, respondents expect home values to flat-line over the next year. Listing prices are down across several major metro regions. The Federal Reserve’s monthly survey of consumer expectations has painted a bleak…
The housing market is showing all the makings of another crash. The Fannie Mae housing sentiment index is at an all-time low. And forbearances are now twice that of Q1 2008 delinquencies. Under extreme stress from the COVID-19 crisis, the U.S. housing market has many of the makings of the 2007-2009 housing crash. But this…
Mortgage applications for home purchases rose for a third straight week, indicating that demand remains strong despite the coronavirus pandemic. Applications could spike even further as more states begin to revoke their stay-at-home orders. Will the pent-up demand seen in the housing market translate to other sectors of the economy too? In an economy ravaged…
Opendoor decides to restart. Housing demand in the U.S. has tanked, and credit has tightened. Job losses add to the uncertainty surrounding the market. As millions of Americans continue to file for unemployment benefits due to the lockdown, the housing market has started feeling the heat. Home sales have started heading south in good measure, but…
In a spooky financial crisis echo, the gap between mortgage rates and Treasury bond yields is at its widest mark since 2009. Mortgage rates are low, but they should be even lower by historical standards. Here’s why the housing market will continue to recover anyway. Treasury bond yields and mortgage rates typically move in tandem,…
