A summer storm is gathering against the housing market all across the US. More than a year ago, I predicted the collapse of Housing Bubble 2.0 and then predicted as soon as the housing market collapse had begun that it would see temporary reprieve until the summer of 2018.
Well, that reprieve has ended … two months ahead of the schedule I suggested as an outlier. The storm clouds are now evident across the entire nation. More importantly, lightning is already striking in the nation’s healthiest housing markets.
New-home construction deconstructs the housing market
New-home-construction starts are down 12.3% nationwide to a nine-month low due to the largest single-month drop in more than year and a half. That is a huge sign of a nationwide housing market collapse when you consider that this is the time of year when housing is usually on a tear because weather allows construction everywhere. Instead, construction in the US is down … way down … EVERYWHERE.
While that nine-month period back to the last low in construction was merely propped up by hurricane and wildfire rebuilds, as I said it would be (see articles listed below), we’ve already hit the point where those necessary rebuilds (still happening) are not strong enough to overcome the more general housing decline that is overtaking the nation and many other nations. Significant to that point, housing starts fell in all regions of the country. Both single-family and multi-family housing construction are losing momentum.
As an even clearer sign of where we are headed in the near future, housing construction permits are also down … for the third count (third month in a row). So, the decline in permits is now a trend. While single-family permits saw a small gain of 0.8% in June, multi-family permits dropped 7.6%. June had been expected by economists to bring a rebound that didn’t materialize, setting a new trend firmly in place.
Mortgage applications also fell nationwide this week.
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This is because the Federal Reserve keeps hiking the interest rate . I believe its an effort to hurt President Trumps policies to improve the economy which have had tremendous success.
ReplyDeleteThe “managed economy” of the Central Bankers is very delicate and can contract very easily and quickly. There is no “balance” as exists in a real economy. Real economies have balances between demand and supply, and costs are balanced by natural resource and labor availability. The US government fakes all of the data and lies about the nature of our economy. Thus nobody has access to real information.
ReplyDeleteThis is the way things are run in tyrannical governments. The US is a facist police State totally controlled by international banking families.
Currently, there are 386 active residential listings in the county, which includes single family, townhomes, condos, and duplexes. Short Sales and foreclosures in Salisbury and Wicomico County make up 8.6% of available residential properties. Mortgage rates were around 4.5% on a 30 year fixed conventional loan.
ReplyDelete33 homes in foreclosure of the only 30% of homes in the county that are owner occupied.
Funny , Trump was the very one who accused Janet Yellen of keeping interest rates low for Obama's political purposes. Now Trump is the one complaining .
ReplyDeleteYou can't have it both ways folks .
Tariffs are to blame for a 40 to 60% increase in material. A hidden tax that you don't see