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
Kommentarer