Pent-up supply suddenly shows up – those vacant homes that no one was counting as vacant.
But it still predates the 5% & 6% holy-moly mortgage rates, whose impact on prices we’ll only see in a few months.
California special: Pending sales collapse by 30%, prices begin to “moderate,” San Francisco condo prices decline year-over-year.
The June sell-off did a job on them.
In short, the party ran out of bamboozle.
Something has to give. And it’s going to be price.
Refinance mortgage applications collapsed to lowest since year 2000.
The shadow inventory emerges with perfect timing, just as holy-moly mortgage rates and sky-high prices keep buyers away.
Purchased in a panic when mortgage rates averaged 3.2% to 4.2%, just before the majestic spike.
Stocks of homebuilders swoon amid worst inflation in construction costs, shortages, and spiking mortgage rates that take buyers out of the market.