THE MAX ALLEN REPORT
HOUSING: 'GREAT CORRECTION' IS HERE
A leading economist says the housing market
is slowly crashing
The Federal Reserve’s policy tightening interest hikes have nudged the U.S. housing market into more than just a slump — and government policymakers have yet to fully acknowledge the extent of the trouble, according to a prominent economist.
Ian Shepherdson, a chief economist at Pantheon Macroeconomics, gives us a bleak outlook for homeowners after federal data showed that sales of new single-family homes hit their lowest level in nearly seven years in July.
Click here: https://nypost.com/2022/08/24/us-housing-market-in-much-worse-shape-than-fed-admits-economist/
Sales fell 12.6% to a seasonally adjusted annual rate of 511,000 homes, well below consensus expectations. “The housing market is in much worse shape than the Fed has been willing to admit,” Shepherdson said in a note to clients. “But policymakers have made it clear that inflation is their primary objective, and housing is collateral damage.”
Yep, collateral damage, and expect that 'damage' to mean an overall house price to fall around 23~30% before it's all over. While good for 'first-time' homebuyers it's really bad news for investors, flippers, and those expecting record profit from sale of their homes.
I'm Max, and that's the way I see it too!
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