The decade-long housing boom in the US is over, and the market has gone eerily quiet

 With a typical home now only affordable to someone earning more than $100,000, brokers are struggling to find buyers. And try convincing a homeowner to sell, especially if it means trading in a 3% mortgage for a much more expensive one.  

For the logjam to break, affordability has to improve, and that means a significant drop in either prices or rates. Borrowing costs have come down some after crossing 7% a few weeks ago, but they’re unlikely to fall much more in the near future, according to Mark Zandi, chief economist for Moody’s Analytics. 

He expects prices to slip almost 10% from their June peak over the next two years — if the country avoids a full-blown recession. 

Even a moderate one, however, could push prices down twice as much, he said.

Bloomberg 28 November 2022 

https://www.bloomberg.com/news/articles/2022-11-28/us-housing-enters-deep-freeze-with-sellers-and-buyers-sidelined


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