Existing Home Sales Plunge 7+%

[WHITT]

Existing-Home Sales Decline Amid Listings Shortage, Surprising Most Economists(!)


The inventory of homes for sale fell to the lowest level on record, based on data from the National Association of Realtors. The total inventory of homes for sale dropped 18% between November and December. Compared to a year ago, sales were down more than 7%.

Expressed in terms of the months-supply, there was a 1.8-month supply of homes for sale in December. A 6-month supply of homes is generally viewed as indicative of a balanced market. Regionally, every part of the country witnessed a decline in home sales in December, led by a 6.8% downturn in the West.

The recent surge in mortgage rates threatens to knock some of the wind out of the housing market’s sails. As of Thursday, the average rate for a 30-year fixed-rate mortgage was 3.56%, according to Freddie Mac. That represents the highest level for mortgage rates since March 2020, when the pandemic became a major concern in the U.S.

https://www.marketwatch.com/story/coming-up-u-s-existing-home-sales-11642690518

[Turbineguy]

1. If trump had been the White House

it would have been called "a slight drop".

"Plunge" is reserved for Democrats.

[WHITT]

10. Indeed

and I also loved the 'Surprising Most Economists'. Really?

[NickB79]

2. So the plunge is due to not enough homes for sale

As opposed to people not wanting to buy homes.

[phylny]

18. Our daughter and son-in-law have put their townhouse in Northern Virginia on the market.

The showings started yesterday, with an open house on Sunday.

So far, they have 46 appointments for showings. They're hunkering down here with us at the lake for the weekend, and will take offers on Monday. Already, they have been asked if they will accept an early offer.

It's crazy.

[PortTack]

3. The untold reason: corporations buying up houses to rent for profit

Zillow started it and has finally pulled out after suffering a 2 billion dollar loss. They are slowly dumping their inventory back on to the open market. Their plan was to do minor improvements and then flip. The corporations want them to rent out. It’s terrible for those looking for reasonable rent, plus they will not put anything into the property and when it’s trashed they’ll leave it behind hurting neighborhood housing values.

[onethatcares]

15. google "Blackstone"

f...ing vultures

[crickets]

19. +1

[TexasBushwhacker]

4. The market still hasn't been hit with the foreclosures

on homes where people got hopelessly behind on their mortgage payments. It's coming though.

[cinematicdiversions]

8. No it really isn't

Simple fact is for most of the country you can rent your home well above your mortgage cost or you can sell it for more than you owe.

Under these circumstances you really have to work at getting foreclosed on.

[WHITT]

9. And?

Simple fact is for most of the country you can rent your home well above your mortgage cost

You then live where?

[cinematicdiversions]

12. I don't know... the Midwest.

The bottom line is to have a forclosure you need to be upside down in your house. And there simply are not many situations like that. Like I said you have to be very unlucky or work very hard at it.

Lord knows the market could use the inventory.

[WHITT]

11. Yep

Almost all the mortgage forbearance programs have just ended. They thought we would be on our way back to 'normal' by now, not have 2 million quitting their jobs and unemployment claims going back up.

[dsc]

5. I am in the process of buying

and found a great loan and a good deal. I am getting a USDA loan meaning no down payment and the closing costs are being thrown into the loan so little to no money down. It is in a small town, new build, 3 BR, 2.5 bath, with a one car attached garage for 192,400. We are still selling houses here like crazy.

[Totally Tunsie]

6. The town in which my son lives in eastern MA

has approximately 35,000 residents, and there is a grand total of 13 properties available for purchase. Homes sell in days, often above asking price.

[peggysue2]

7. We sold our home in TN for more than we ever anticipated.

That was in August. We have yet to find anything in PA. The market is sparse to nonexistent in our current area. The one home we made a bid on was kicked out by a cash buyer requiring no contingencies. There is no way I'm buying a house without an inspection and appraisal.

So, we continue to live in my MIL's former home, uncomfortable, frustrated, our household goods in storage. Ugh!

At this rate, we may end up in Jersey again. Taxes are higher than we'd like but the houses are popping up.

To be continued.

[TexasBushwhacker]

21. I feel the same way

I refuse to decide on some as important as buying a house without time to do my due diligence. Now I'm single, 65 and renting a room from a couple my age. I still work, but in exchange for watching their animals while they travel 4 months or more out of the year, I pay $450 a month rent. I love it!

[radicalleft]

13. Did you miss this part? AND BTW, nice headline "Plunge"...

Overall in 2021, existing-home sales reached the highest level since 2006, a sign of the strong demand among buyers nationwide in light of the short supply of properties on the market.

“December saw sales retreat, but the pull back was more a sign of supply constraints than an indication of a weakened demand for housing,” said Lawrence Yun, the National Association of Realtors’ chief economist, in the report.

[WHITT]

20. Nope

Didn't "miss" it.

Doesn't change the fact that sales were down more than 7%.

[GoCubsGo]

14. I'm sure the weather and the holidays had nothing to do with it

People generally are not house-hunting in November and December. They're out getting ready for the holidays. Not to mention parts of the country having one snowstorm after another. Great conditions for house-hunting.

[onethatcares]

16. Dayaaaam,

that sounds logical.

[bucolic_frolic]

17. Bluntly, capital should never be free, it spurs rampant speculation

1) 3.56% is just about free especially in long term loans
2) it's been just about free for 14 years
3) every investment idea and project has just about infinite returns when the cost of capital - the interest rate - is zero
4) it's why we now have, globally, massive overcapacity in everything
5) we are about to have the mother of all collapses as supply, eventually, despite the current covid-generated stockouts, will exceed demand, which struggles from poor returns to the masses of labor which doesn't have the cash to buy all the output.