The fundamental reason house prices will fall this fall

The prices that people expect tomorrow influence today’s demand and supply. Economists say that “fundamental” economic factors, such as interest rates and family income, determine home prices. For some unknown reason, economists don’t consider people’s expectations of future house prices to be a major factor in determining current house prices, but they should. Economists have … Read more

Housing market peaked, now in correction: Moody’s economist Mark Zandi

moody’s Analytics Chief Economist Mark Zandi is ready to give you a call. He says Fortune that we have officially gone from a housing boom to a “housing fix.” “The housing market has peaked…everything points to a turnaround in the housing market,” says Zandi. “In terms of home sales, they are falling sharply. Housing demand … Read more

Speedy escape from housing market slump unlikely: ARMs tied amid low rate lock-up

Home sales, construction volumes and now even home prices in many markets (the last shoe to drop in a housing correction) are falling. Clearly, the fact that mortgage rates have soared from a low of 2.6% in December 2020 to six percent in early September is holding many would-be homebuyers in the grips. The last … Read more

Homes prices in these cities could drop 10%, Moody’s says

A housing market crash seemed all but assured two years ago. At the time, it made sense: Strict state-issued lockdowns had pushed the US unemployment rate to an all-time low. highest level since the Great Depression era, and many states had banned in-person home showings. However, there was no real estate collapse. Both Congress and … Read more