RH (RH) CEO Gary Friedman has never been known to hold back his blunt views on business and life on earnings calls, and his latest matter-of-fact commentary directly involves the U.S. housing market. “It’s just a lot of uncertainty right now,” Friedman told analysts on the company’s latest earnings call. “But one thing I’m certain of: The housing market is collapsing at a level I haven’t seen since 2008. I haven’t seen this kind of drop since 2008.” A house for sale in Washington, D.C., the… Source link
Read More »7 Florida Cities That Could Be Headed for a Housing Crisis
Florida seems to be a state that people are always flocking to and never leaving, with its temperate weather, great beaches and lots of excellent attractions. However, even Florida is feeling the results of market forces, which are increasing mortgage rates, driving up home prices, and thus driving out people. In fact, the Florida cities on this list are showing alarming signs that could be pointing toward a housing crisis. Holiday Spending: Get Top Holiday Shopping and Savings TipsRead: Source link
Read More »Housing starts and permits drop in October
House construction in the U.S. declined in October more than expected, while the number of permits for single-family homes tumbled, another sign of growing reluctance among home builders to increase inventory as many buyers are pushed out of the market. Residential starts — including both single- and multi-family units — decreased 4.2% last month to a 1.425 million annualized rate, according to government data released Thursday. Economists surveyed by Bloomberg had forecast a 2.0%… Source link
Read More »Here’s another red flag for housing from the largest home builder
The largest U.S. homebuilder offered up the latest examples of how quickly buyers are fleeing the housing market. Buyers canceled nearly a third of deals in D.R. Horton Inc.’s (DHI) fiscal fourth quarter, up from 19% a year ago, the Texas-based company said Wednesday. New orders declined 15% to 13,582 homes from a year earlier, down by 10% in value. The company is responding by walking away from land deals that don’t meet certain metrics as the market has shifted, writing off $34 million of… Source link
Read More »Jerome Powell just warned that the US housing market needs a ‘difficult correction’ so that folks can afford homes again — but here’s why it’ll look nothing like 2008
Real estate investors have largely done well for the past few years. But with higher interest rates, things could be about to change. The U.S. Federal Reserve raised its benchmark interest rates by 0.75 basis points on Wednesday, marking the third such hike in a row. Higher interest rates translate to bigger mortgage payments — not good news for the housing market. But cooling down housing prices is part of what needs to be done to bring inflation under control. Don’t miss “For the longer… Source link
Read More »Housing affordability hits worst level in 37 years
Housing affordability hasn’t been this bad since Ronald Reagan was president. It now takes 35.51% of the median household income to make a principal and interest payment on the median home with 20% down, according to figures mortgage technology and data provider Black Knight shared with Yahoo Money. That’s the highest payment-to-income ratio since October 1985 when it took 36.01% of household income to make that payment. Just in January, that ratio was 24.61%, below the long-term average… Source link
Read More »The housing market ‘in much worse shape’ than Fed wants to admit: Economist
The U.S. housing market is under pressure. Data this week on new home sales and pending home sales reflected sharp drops from last year and showed the impact higher interest rates continue to have on prospective buyers. On Wednesday, the latest report on pending home sales from the National Association of Realtors showed contracts to buy previously owned homes fell 1% from June to July and 19.9% from July 2021 to July 2022. The Pending Home Sales Index — a measure of signed contracts on… Source link
Read More »The housing market is cracking and that will hammer Lowe’s, analyst warns
Lowe’s stock is getting nailed with a downgrade by analysts at Citi on fears that a rapid cooling in the housing market will hammer demand at the home improvement retailer. Citi analyst Steven Zaccone slashed his rating on Lowe’s to neutral from buy on Thursday. “We see risk of a 2Q miss on same-store sales and EPS vs. Street with the potential to cut FY22 guidance given the weak first half results,” Zaccone wrote in a new note to clients. “We believe the buy-side is bracing for a miss and… Source link
Read More »Robert Shiller predicted the 2008 housing bubble. Here’s his 2022 call
Robert Shiller released a book in 2000 titled Irrational Exuberance, which proclaimed the stock market was a bubble. Soon afterward, the tech bubble burst. Then in 2004, the Yale economics professor called attention to spiking real estate prices with a paper titled Is There a Bubble in the Housing Market? By 2007, Shiller predicted its bust was inevitable. Soon afterward, of course, the 2008 housing bubble burst. As the pandemic housing boom—which has pushed up U.S. home prices by 42% over… Source link
Read More »Housing correction is ‘dead ahead,’ warns Moody’s chief economist Mark Zandi — here’s how he sees things playing out over the next several months
Housing correction is ‘dead ahead,’ warns Moody’s chief economist Mark Zandi — here’s how he sees things playing out over the next several months Existing home sales showed a 5.4% decline in June from May, but prices remain elevated, according to the National Association of Realtors. The median sale price of existing homes in the U.S. set a new record high of $416,000 in June, marking a 13.4% increase from a year ago. Yet for those continuing to watch these rising home prices, chief… Source link
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