The U.S. housing market is experiencing Its second-largest home price correction since the post-World War II era.
Mitch Roschelle, Macro Trends Advisors’ founding partner, attributed the dramatic correction to Americans’ uncertainty for the markets. “uneasiness” regarding the economy. He explained that he was “Varney & Co.“Friday that the “shoe to drop” This could happen if there is a rise of unemployment in the country, which could lead to a “leg down” In the housing market.
“A couple of things are going to cause it to turn in the opposite direction, meaning home prices are going up. One is certainty. And when you don’t know if interest rates are going to go up or not. I think that is what is driving a lot of people away from buying because they just don’t know if rates are going to be cheaper in two months, and they’re just going to wait,” FOX Business was informed by Roschelle Ashley Webster.
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“And the other thing is uneasiness regarding the economy. And I think the shoe to drop there would be if we start seeing layoffs, and we start seeing unemployment starting to rise, I think that could be something that causes a leg down in the housing market in a big way.”
Roschelle’s remarks are in response to the huge power shift that has taken place in the real estate industry. Roschelle argues that the power has been “completely shift[ed]” Keep away from the sellers “constraining” The nation’s housing market is in crisis
“Right now, I would say it’s a buyer’s market. I think the power has completely shifted from seller to buyer. Doesn’t mean you don’t see some bidding wars because again, I think statistically across the country, we’re at 3.3 months supply. So that’s still relatively low,” Roschelle said.
“So, if there’s a house that hits the market that’s perfect, and it ticks all the boxes for buyers and there are buyers out in the market, I think you could see sporadically bidding wars, but mostly, you know, it’s one or two people chasing that house. And we’re not seeing that. We’re not.”
The average home price will plummet after its peak caused by the pandemic.
Fortune.com reports that housing prices in the United States The October 2022 levels were 38.1% higher that the March 2020 levels. Roschelle predicts that average home prices will drop 10% to 15% from their peak in 2022.
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“My 10% to 15% [prediction] is from the peak in 2022, that where we land in terms of average home prices being down 10 to 15%. Which if we’re talking about the stock market, it would certainly be seen as a correction, but not a bear market. The thing to remember is that from February 2020, home prices went up as much as 40% to where we are today,” The expert in housing explained.
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“So what we’re doing is we’re giving back perhaps at most, a third or a quarter of the gains that we realized. But that doesn’t help somebody who just bought a house at the top of the market and now has something that’s lost 10%,” Roschelle concluded.