TODAY'S PODCAST BACKUP
THE HOUSING MARKET ENTERS INTO RECESSION
Full Article: https://fortune.com/2022/07/20/housing-market-enters-into-recessionheres-what-to-expect-next-home-price-prediction/
The housing cycle—which began its upward climb in 2011—has officially turned over. Simply put: We've moved into a housing recession.
On Tuesday, we learned that homebuilders broke ground on 982,000 single-family homes in June. That's down 19% since February, and down 16% from the same month in 2021. While it's hardly a "blow out," it's clear builders are cutting back. Historically speaking, that's exactly what happens when a housing cycle turns over: FORTUNE: As existing home inventory—which builders compete against—begins to spike, homebuilders start to cut back.
"Peak euphoria is behind us. We are giving back some of the euphoria [home] pricing that was rolling over every housing market," says Rick Palacios Jr., head of research at John Burns Real Estate Consulting.
Existing home inventory will continue to rise, and homebuilding will continue to slow. At least that's the view at John Burns Real Estate Consulting, which does consulting work for both builders and investors. As it does, the ongoing housing recession (i.e. a contracting housing market) could push home prices lower in bubbly regional housing markets. Indeed, many bubbly markets, Palacios says, are barreling towards price cuts in both 2023 and 2024. That includes markets like Phoenix, Nashville, West Palm Beach, Las Vegas, and Austin. In Boise, Palacios says home prices could go negative on a year-over-year basis as soon as December.
"Builders are already [deciding] to not pour slabs in certain markets. Which is the technical trigger for a start for a home. In certain markets it will feel like [a housing bust]," Palacios says. (read full article)
CITIES WHERE PEOPLE ARE MOVING OUT OF
Full Article: https://money.com/cities-homebuyers-fleeing-where-relocating/?xid=flipboard&utm_source=flipboard&utm_medium=rss_synd
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