While the U.S. flirts with recession, one clear loser from the recent round of U.S. interest hikes has been the housing market. What does the data suggest?
First off it’s definitely not that bad, yet. Today house pricing remains strong, year-on-year Zillow has house prices up 18% as of July. Slightly more pessimistically, Redfin’sRDFN -2.7% data has house prices up year-over-year, but already starting to dip since June.
It gets worse, though. Other housing data suggests trouble looming. For example, the S&P Select Homebuilders Index has underperformed the S&P 500 by 11% year-to-date, and the performance of building supply stocks have been similarly poor. The stock market is a reasonable predictor of future profits, though, but it doesn’t always get it right.
To continue reading the rest of the article, please click on the source link below:
https://www.forbes.com/sites/simonmoore/2022/08/29/as-mortgages-spike-dramatically-should-we-expect-a-house-price-crash/?sh=60c716917cb5
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
