Skip to comments.U.S. Existing Home Sales Are Rapidly Slowing. Nobody Is Quite Sure Why
Posted on 01/22/2019 9:05:41 PM PST by dila813
U.S. housing sales, a key pillar of economic growth in recent years, are looking weaker again.
Existing home sales declined for much of 2018. In December, according to the National Association of Realtors, sales of single-family homes, condos, and co-ops fell a larger-than-expected 6.4% from the previous month. A Reuters survey of economists projected home sales to decline by a modest 1% in December.
(Excerpt) Read more at fortune.com ...
These areas are cheaper and I can get a much bigger house and I am regretting being tied down to a blue state when I can be with people that are more like me who share my values.
Housing prices are out of this World high, and with interest rates going up it’s no wonder sales are down.
I’m sure it has nothing to do with interest rates going up./s
So glad to have escaped Silicon Valley in early fall 2018 with the sale of our house. Realtors in the area were starting to worry about the upcoming market. Could be several factors, at least where we lived. Higher interest rates. Loss of some of the deductions for high property and state income taxes. High-tech companies relocating part or all of their California-based businesses out of state to avoid California’s business hostile environment.
Because people like their house and don't need another one?
This seems to me like much ado about nothing , where is it written that home sales HAVE to the same or better every year? Like most articles it to me is just fluff and filler for some “journalist”...if you read the whole article the “EXPERT” claims that we are in a mental recession....what a crock . Next article will be about credit card debt of each household being excessive or on line sales decline....or you name any aspect of how the “EXPERTS” deem how it IS supposed to be ! With the web it is so easy to see chicken little constantly reappear claiming the sky is falling , well a least a little bit and you should worry! The following post was written by a non-expert, unwashed American who is tired of the B.S.
ChiComs aren’t buying?
It should also be pointed out that the higher cost of real estates is making it nearly impossible for a young couple to afford the down payment,
I suspect the changes to SALT deductibility are starting to bite. Mortgage rates aren’t much higher, and have actually gone down recently.
maybe because they are building like crazy and there really isnt the need for all the new homes? other than maybe they are subsidizing illegals in them?
That’s my first thought - the Chinese aren’t buying. Something deeper is going on.
Congrats. Bet you cashed out with a pretty penny.
For personal reasons, I can’t leave the Bay Area, but, man, it’s tempting.
Nobody Is Quite Sure Why
Could it have anything to do with the global economic collapse? China crashing , Australia crashing , QT , prices are sky high due to 10 years of QE , incomes haven’t followed so homes are unaffordable.. rates are rising and will likely hit 15% on the 10 year within the next 24 months.
Yeah, much more than if the house were in most parts of the country. Live in that house for 23 years, plus deferred capital gains from the house we previously owned for 9 years. We're looking at some monster capital gains tax bills for federal and California, even after the $500K exemption. A first world problem, to be sure. Barring some overlooked tax-related issue, this April will be the last time we file in California. :D
For personal reasons, I cant leave the Bay Area, but, man, its tempting.
I get that. We were tied to California until a couple of years ago. Once our only child moved to Texas in 2016, it was just a matter of time before we followed suit.
i’m thinking you had great timing
Or recent RAT rise to power.
The political and tax situation in some places makes home ownership a complete waste of time.
There is an incredible number of abandoned houses in our area that are not for sale. Some of them are nice enough but will not be for long. There is also a goodly number of people looking for small land parcels on which to build a house or wanting to buy an existing house. The pickings are very slim. I have had several people stop asking to buy an acre or so of my property or if I know of any for sale. So many wanted to rent an old house I had I tore it down.
Thats my first thought - the Chinese arent buying. Something deeper is going on.
The Chinese economy is in trouble.
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