Housing prices falling at levels not seen since 2008
May 28, 2022 23:28:27 GMT -5
Post by Berean on May 28, 2022 23:28:27 GMT -5
Is the housing boom about to bust? Sellers are slashing prices at levels not seen since before the pandemic amid rapidly cooling market as hedge fund manager of The Big Short fame warns 'It's like watching a plane crash'
More than 20% of homes for sale in Philadelphia, Boise, New Orleans and Sacramento had their prices reduced in April
Michael Burry, of 'The Big Short' fame, compared the slowing housing market to 2008 saying it's like 'watching a plane crash'
This week mortgage rates reached a 13-year high of more than 5%
One economist said that house prices could drop as much as 40% during the summer of 2022
By PAUL FARRELL FOR DAILYMAIL.COM
PUBLISHED: 17:55 EDT, 27 May 2022 | UPDATED: 21:23 EDT, 27 May 2022
America's red hot housing market is cooling down fast sparking fears of a housing bust and crippling recession as nearly half of home sale prices are slashed in some areas.
After two years of buyers battling paying tens of thousands - or sometimes hundreds of thousands - over asking price to secure homes as millions fled the cities in favor of the suburbs during the pandemic, it appears the boom in over.
An increase in mortgage rates, rising house prices and uncertainty around Joe Biden's economy as inflation soars, are contributing factors to the slowdown, according to experts.
Weighing in on the market trends, former hedge fund manager Michael Burry of 'The Big Short' fame, said in a now-deleted tweet on May 24, that the falling stocks and slowing home sales, remind him of 2008.
Burry tweeted: 'As I said about 2008, it's like watching a plane crash.'
In a statement, the chief economist with real estate giant Redfin Daryl Fairweather said: 'The picture of a softening housing market is becoming more clear, especially to home sellers who are increasingly turning to price drops as buyers become more cost-conscious under higher mortgage rates.'
That came following a report from the company that said that the amount of home sellers lowering their prices reached it's highest level since October 2019.
The report says that one in five homes on the market across the country are seeing their prices lowered by owners.
Boise, Idaho, which saw an influx of out-of-state migrants during the Covid-19 pandemic, was the worst hit as 40% of homes on the market there saw a price drop in April 2022.
Continued at link
More than 20% of homes for sale in Philadelphia, Boise, New Orleans and Sacramento had their prices reduced in April
Michael Burry, of 'The Big Short' fame, compared the slowing housing market to 2008 saying it's like 'watching a plane crash'
This week mortgage rates reached a 13-year high of more than 5%
One economist said that house prices could drop as much as 40% during the summer of 2022
By PAUL FARRELL FOR DAILYMAIL.COM
PUBLISHED: 17:55 EDT, 27 May 2022 | UPDATED: 21:23 EDT, 27 May 2022
America's red hot housing market is cooling down fast sparking fears of a housing bust and crippling recession as nearly half of home sale prices are slashed in some areas.
After two years of buyers battling paying tens of thousands - or sometimes hundreds of thousands - over asking price to secure homes as millions fled the cities in favor of the suburbs during the pandemic, it appears the boom in over.
An increase in mortgage rates, rising house prices and uncertainty around Joe Biden's economy as inflation soars, are contributing factors to the slowdown, according to experts.
Weighing in on the market trends, former hedge fund manager Michael Burry of 'The Big Short' fame, said in a now-deleted tweet on May 24, that the falling stocks and slowing home sales, remind him of 2008.
Burry tweeted: 'As I said about 2008, it's like watching a plane crash.'
In a statement, the chief economist with real estate giant Redfin Daryl Fairweather said: 'The picture of a softening housing market is becoming more clear, especially to home sellers who are increasingly turning to price drops as buyers become more cost-conscious under higher mortgage rates.'
That came following a report from the company that said that the amount of home sellers lowering their prices reached it's highest level since October 2019.
The report says that one in five homes on the market across the country are seeing their prices lowered by owners.
Boise, Idaho, which saw an influx of out-of-state migrants during the Covid-19 pandemic, was the worst hit as 40% of homes on the market there saw a price drop in April 2022.
Continued at link
