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| Economy |
| Real estate market finally shows signs of cooling |
| 2022-04-22 |
| [Washington Examiner] The heated real estate market that has seen home prices across the country soar to record highs since the start of the pandemic is showing early signs of cooling, according to experts and recent data. Sales of existing homes nationwide were down 2.7% between February and March, according to the National Association of Realtors. Sales decreased 4.5%, and home showings fell 19% from the same time last year. According to the group's most recent data, pending home sales slipped by 4.1%, too. "After two years of super-heated market conditions, home sales are retreating back to pre-Covid days," Dr. Lawrence Yun, chief economist at the National Association of Realtors, told the Washington Examiner magazine by email. Redfin, an online real estate brokerage, reported declines for March as well, finding that the number of home sales had dropped 3.7% since February and 8.1% since last year. The early signs of a housing market cooldown follow the central bank’s decision last month to increase interest rates for the first time since 2018 to tamp down 40-year inflation highs across the board on goods and services. The Federal Reserve has signaled further interest rate hikes will come in the months ahead. As a result, mortgage rates have surpassed 5% for the first time in more than a decade, increasing the financial burden of buying a home and pushing some homebuyers to reconsider their plans, experts said. |
| Posted by:Besoeker |
| #7 Back in 2016 existing house prices in the Plano suburb of Dallas were going up 1% a month, according to trailing daughter #2. She and her husband didn’t even try for new construction. |
| Posted by: trailing wife 2022-04-22 19:35 |
| #6 Trying to buy a place in Texas. Interested in a new house... Builders have resorted to setting options like color, flooring, siding and buyers can take it or leave it. No 'design centres'. Builders have a waiting list of people waiting for a particular type of house. Builders up their prices often. One said that they raise their prices after every 2-3 sales. Other than that prices go up every 2 weeks. Builders don't contract a house until the build reaches a certain point (currently, I hear, when the electrical meter is attached) and even then not until they are _sure_ they can meet the schedule with the supply issues. As well as lender requirements. Its Crazy. |
| Posted by: CrazyFool 2022-04-22 15:39 |
| #5 My house in North County San Diego just sold in 3 days for above the asking price. No sign of slowing in this corner of California. Not yet. |
| Posted by: ruprecht 2022-04-22 09:40 |
| #4 A Duluth Ga 3/2 house that we purchased for $125,000 updated to 5/3 adding a finished basement suite and replaced the roof 10 years ago sold for $124,000 (after the Obama Housing Crash). The same house was recently on the BIDEN market for $210,000 with no mentioned upgrades. It did not sell. |
| Posted by: NN2N1 2022-04-22 08:13 |
| #3 I sold a couple of nice properties a couple years prior to the pandemic. They sold in hours or days of the listing. The market was tight for homes less than $300K. Nowadays builders can't build a decent hours for that price. |
| Posted by: The Walking Unvaxed 2022-04-22 07:22 |
| #2 New construction costs are exorbitant, due obviously to escalating material costs. This, along with high interest rates are beginning to have an impact on the housing market. |
| Posted by: Besoeker 2022-04-22 04:50 |
| #1 House across the street sold the moment it went on the market. House being built up the street is going up slower than the Great Pyramid. |
| Posted by: M. Murcek 2022-04-22 03:02 |