{"id":6542,"date":"2022-10-25T10:08:23","date_gmt":"2022-10-25T14:08:23","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6542"},"modified":"2022-10-25T10:08:26","modified_gmt":"2022-10-25T14:08:26","slug":"perception-of-a-housing-crisis","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/10\/25\/perception-of-a-housing-crisis\/","title":{"rendered":"Perception of a housing crisis"},"content":{"rendered":"\n

If you\u2019ve watched the news lately, you might get the feeling that the housing market is imploding.\u00a0 Unfortunately, the talking heads are reporting the titles of the news releases, such as the October 20th<\/sup> National Association of Realtors press release<\/a> headline \u201cExisting-Home Sales Decreased 1.5% in September,\u201d without delving into the details. Like anything else that\u2019s reported, just parroting a headline doesn\u2019t tell the entire story. Get the big picture<\/a> and avert the perception of a housing crisis.<\/p>\n\n\n\n

\"perception
Home price forecast<\/figcaption><\/figure><\/div>\n\n\n\n

Here are the highlights of the NAR report: \u201cExisting-home\nsales sagged for the eighth consecutive month to a seasonally adjusted annual\nrate of 4.71 million. Sales slipped 1.5% from August and 23.8% from the\nprevious year. The median existing-home sales price increased to $384,800, up\n8.4% from one year ago. The inventory of unsold existing homes declined for the\nsecond straight month to 1.25 million by the end of September, or the\nequivalent of 3.2 months’ supply at the current monthly sales pace<\/em>.\u201d<\/p>\n\n\n\n

The takeaway is that yes, existing-home sales have been\nsluggish (eight consecutive months), however does that mean a housing crash?\nNo. Consider the other important data points included in the news release: the median\nexisting-home sale price<\/em><\/strong> increased 8.4 percent<\/em> <\/strong>year-over-year,\nAND the inventory of unsold homes continues to decrease<\/em><\/strong>. <\/p>\n\n\n\n

What’s your perception of a housing crisis ? For many, the memories are still fresh of the housing crisis of 2007 and subsequent foreclosure crisis. So, it\u2019s not surprising that the media\u2019s alarms go off when existing-home sales drop as they did recently. However, the fundamentals of today\u2019s housing market are much different than that of 2008-2010. During the housing crisis of 2007, home sale prices plummeted when home sales dropped. Additionally, inventories of unsold homes swelled to record levels. <\/p>\n\n\n\n

Today\u2019s housing market is much different and looking at the entire picture, the stats tell a different story than what is being portrayed by the media. NAR Chief Economist Lawrence Yun chalks up the decline in sales to increasing mortgage interest rates, which are approaching the accepted historical average of 7 to 8 percent.\u00a0 He also points out “\u2026Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory\u2026 The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.”<\/em><\/p>\n\n\n\n

By Dan Krell
Copyright \u00a9 2022 <\/p>\n\n\n\n

\"Protected<\/a><\/figure>\n\n\n\n

Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you\u2019ve watched the news lately, you might get the feeling that the housing market is imploding.\u00a0 Unfortunately, the talking heads are reporting the titles of the news releases, such as the October 20th National Association of Realtors press release headline \u201cExisting-Home Sales Decreased 1.5% in September,\u201d without delving into the details. Like anything else … <\/p>\n

Continue reading “Perception of a housing crisis”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[469,139,288,13,26],"tags":[936,870,466,445,797,593],"class_list":["post-6542","post","type-post","status-publish","format-standard","hentry","category-home-prices","category-home-sales","category-housing-market","category-real-estate","category-real-estate-market","tag-home-prices","tag-home-sales","tag-housing-market-2","tag-housing-market-trends","tag-real-estate","tag-real-estate-market-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1Hw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=6542"}],"version-history":[{"count":1,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6542\/revisions"}],"predecessor-version":[{"id":6544,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6542\/revisions\/6544"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}