Inflation here? gas/grocery prices just continue to climb
Already starting to happen.
Real estate data is always 60 days behind what’s happening on the street when factoring in 30-60 day closes and everyone looking to buy a house taking a 60-day rate lock.
Realtors are talking about houses getting 50 walk-ins for a showing in January and only 5-10 in April.
We have reached the point where the monthly costs due to higher rates will price out people until rates or prices drop. I don’t think we see big price drops.
Telework is going to change the market. Before the pandemic 3% of people teleworked and during that number hit 59%. Jobs are less of a push factor for buying/selling.
The reason HD and Lowes made bank these last few years because families are investing in their home. No one is going to lower prices because of temporary high rates after a 20-50k improvement.
I think the housing market is about to seize. We will likely see 50-75 basis point rate hikes until inflation cools. The stock market drop means smaller down payments. Buyers won’t have the rate/cash for low monthly payments. Sellers won’t want to drop prices and lock in a loss or buy at double the rates after refinancing in 2020-21.