Sales of homes that are not newly built or developed

homes for sale

It is clear that the median price of existing homes has been increasing over the past few months, while the number of new existing home sales has been generally decreasing. This trend can be attributed to affordability issues facing potential homebuyers. With limited disposable income, many Americans are unable to allocate a significant portion of their budget towards monthly mortgage payments. As a result, the demand for existing homes has decreased, leading to a decline in sales. This trend may continue unless there is a significant increase in disposable income or a decrease in housing prices.

Recent trends in the housing market have shown that the median price of existing homes has increased significantly over the past few months, while the number of new existing home sales has decreased. This can be attributed to affordability issues faced by potential homebuyers. In some cases, monthly payments for a similar-priced home have increased by 50% compared to those purchased roughly 8 to 12 months ago.

Housing is a leading economic indicator and plays a significant role in the overall health of the economy. For most Americans, their home represents their largest investment, and housing wealth accounts for around half of their total household net worth. When housing prices decline, it can have a ripple effect on the economy. Consumers may spend less due to feeling poorer, tax revenues may decrease, homebuilders may scale back on building projects, construction workers may lose their jobs, and unemployment levels may rise.

A recent survey conducted by consultancy PwC showed that 50% of companies are planning to reduce their overall headcount, while 46% are dropping or reducing signing bonuses and 44% are rescinding job offers. These trends indicate that wage inflation, which was previously a concern, may now be shifting towards wage deflation. This could mean that Americans may need to continue working later in life rather than retiring at a certain age.

However, these trends also present opportunities for contrarian investors to look for deals in the housing market. When the market appears uncertain, it may be a good time to start looking for bargains. Experts often make the most noise at or near market bottoms, and it is likely that the market will bottom once the Federal Reserve takes action to support the economy and the stock market. Risk-takers can start looking for deals in what is now a buyers’ market, but it is important to take the time to find the best possible deal rather than rushing into a purchase.

 

 

Other Articles of Interest

COVID 19 deaths in the US: Is The Media telling the Truth
Stock Market Buying opportunity by Coronavirus
What is a coronavirus and how it affects the Stock Market
Stock Market outlook and the future of the work
Stock Market Trends