Builders have to build and sell homes, no matter what the market conditions. More price cuts may be needed to get this moving.
They’re making good money and got on with their lives. Fueled by low interest rates and FOMO, it was part of the force behind the price surge.
Home price rise since 2012 “may be coming to an end”: Shiller. Biggest YoY drops: Seattle, San Francisco, Las Vegas, Phoenix, San Diego, Portland, Denver, Dallas.
They’re not listing their homes because they’re not moving out because they’re not buying a home to move into because they don’t want to give up their 3% gift from God.
Sales of used houses are dismal, even as supply & days on the market rise. Homeowners await inspiration. Homebuilders got the memo.
It’s spring selling season, when prices always rise month-to-month, and they did, but it wasn’t enough.
Price cuts & mortgage-rate buydowns pull sales from previously owned homes.
June (next month’s data) will be the final leg of spring selling season. Then things skid downhill till early 2024.
Another sign the economy is flying a cruising altitude and refuses to land, even with short-term interest rates over 5%.
Spring selling season was a dud. But what comes next may be worse, that’s what mortgage applications and investors tell us.