Quote:
Originally Posted by kkingston57
1/2 of the problem is the rates. Homes are still out of reach for some home buyers. Watched an old All in the Family show and Archie could live in a small home and was making $5.50 an hour
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Tariffs will dictate no rate hikes or rate cuts. Currently the Consumer Price Index CPI is leading the Producer Price Index PPI. If inflation is maintained at 3% the Fed board will never vote to cut rates. They know full well producers will raise their pricing until
they see a progressive inventory balance.
Homes still aren’t priced low enough to traditional trending prior to COVID. In many cases home prices are up by over 100% from just prior to 2019! That all has to come back down. Many economists see the rebalancing in trend to be about 30 points off of a 2019 selling price. This certainly means further reductions in current home prices. Recall, if a home value went up 2-3% per year since 2019, this would still measure far less than a 30% increase in home values from the 2019 demarcation.