Housing Supply Curve – The Big Shift Left
Price up, supply down.
Existing-home sales fell 1.7% to a seasonally adjusted annual pace of 5.27 million, the National Association of Realtors said Tuesday. Sales declined 2.2% compared with a year earlier, marking the 16th consecutive month of annual declines in sales.
The spring selling season is crucial because about 40% of the year’s sales take place in March through June. Falling sales during most of this period have puzzled economists. They struggle to explain why the housing market has remained soft while the rest of the economy has been booming.
Borrowing rates have fallen to their lowest levels in two years, wages are rising and unemployment is at a 50-year low.
“It doesn’t make economic sense,” said Lawrence Yun, the NAR’s chief economist. – WSJ
The housing market is all gummed up and still suffering from the big supply shock we have written about — homes bought up and beaten into rentals and rising costs of construction.
First-time buyers can’t afford homes even at these interest rates. We suspect a demand shock — beginning with the retreat of foreign buyers — will start to show up in the data, which should bring prices down.
See here and here for our analysis on the housing market.
Source: https://global-macro-monitor.com/2019/07/23/housing-supply-curve-the-big-shift-left/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).