"The US housing market has been losing its wheels despite the Federal Reserve’s rate cuts, and the severity of the problem came to the fore when the Commerce Department released its latest data."
The median price of a new house slid 8.8 percent year over year in September to $299,400. The month-over-month decline came in at 7.9 percent."
Existing home prices (Year over year change) are exhibiting the exact same pattern as 2008
Homebuilders peaked in late 2017 with home prices. And have soared in 2019 due to the Fed's rate cuts. However, lower interest rates have not fed through to home prices. This was a head fake rally.
The high end is getting hit much harder than lower priced housing. Whereas economy homebuilders made new highs this week (Pulte, KB Homes), luxury home builders are languishing
With 10,000 Baby Boomers on average retiring every day in the U.S., no one wants a McMansion anymore. There is no market for massive homes.
Globally there are far too many condos in every major city. All built under the false pretense that lack of supply was driving prices higher, when it was really only rampant speculation. Most are now sitting empty. The number of empty condos that are about to hit markets is unthinkable.
"Major cities across the United States saw a large number of luxury condos transform their skyline the past five years -- units that boasted glitzy waterfronts and sparkling city views, with a hefty price tag. But now, cities are seeing ghost towers. And thousands of unsold units are clogging up the real-estate market."
Record low global interest rates are not enough to clear the market
Almost fifteen years since the peak of the housing bubble and housing starts are still below 1960s levels, despite a 60% increase in the U.S. population. This was the weakest recovery in housing in U.S. history:
That's what bailed out criminality does to a country. Rinse and repeat.
As long as Dumbphone doesn't roll over, this will all be fine. Bet everything accordingly
Technically, this should not be possible. Unless there's about to be a massive crash.
