The Housing Market Is Worse Than You Think
1. It’s Worse Than You Imagined – Everyone is feeling the squeeze. “Mortgage rates are sky high, prices are sky high, and there’s no inventory,” said Mark Zandi, the chief economist at Moody’s Analytics. “This may be the worst time in my living history for the home buyer — it just doesn’t make sense.”
2. How Low Will Home Prices Go? – Most analysts don’t expect home prices to free fall the way they did after the subprime mortgage crisis in 2008 (…) but the cuts are coming, analysts said.
3. What’s Going On With Mortgage Rates? – Because the typical homeowner now has a mortgage with a low 3.5 percent interest rate, few would choose to sell today for fear of facing much higher borrowing costs on their next property. “People are in wait-and-see mode, because the numbers don’t work out,” said Danielle Hale, the chief economist at Realtor.com.
4. What Can Sellers Do? – Sellers are hearing an unfamiliar word: concessions. Even in markets where prices have not declined, sellers are becoming more open to sweeteners like agreeing to contract contingencies in the case of financing trouble, or offering to pay for loose ends to lubricate the deal.
5. Are Rents Finally Cooling? – After record levels of demand for rental housing in 2021, there has been a significant slowdown in leasing this year, and price growth is also beginning to slow, according to Jay Parsons, the head of economics for RealPage, a rental housing software company.
The Housing Market Is Worse Than You Think
1. It’s Worse Than You Imagined – Everyone is feeling the squeeze. “Mortgage rates are sky high, prices are sky high, and there’s no inventory,” said Mark Zandi, the chief economist at Moody’s Analytics. “This may be the worst time in my living history for the home buyer — it just doesn’t make sense.”
2. How Low Will Home Prices Go? – Most analysts don’t expect home prices to free fall the way they did after the subprime mortgage crisis in 2008 (…) but the cuts are coming, analysts said.
3. What’s Going On With Mortgage Rates? – Because the typical homeowner now has a mortgage with a low 3.5 percent interest rate, few would choose to sell today for fear of facing much higher borrowing costs on their next property. “People are in wait-and-see mode, because the numbers don’t work out,” said Danielle Hale, the chief economist at Realtor.com.
4. What Can Sellers Do? – Sellers are hearing an unfamiliar word: concessions. Even in markets where prices have not declined, sellers are becoming more open to sweeteners like agreeing to contract contingencies in the case of financing trouble, or offering to pay for loose ends to lubricate the deal.
5. Are Rents Finally Cooling? – After record levels of demand for rental housing in 2021, there has been a significant slowdown in leasing this year, and price growth is also beginning to slow, according to Jay Parsons, the head of economics for RealPage, a rental housing software company.