Redfin Reports Existing Home Sales Decline 25 Percent From a Year Ago – Mish Talk
Housing Market Standstill
That’s not a standstill. It’s a collapse. So is this.
60,000 Deals Called Off
About 60,000 deals were called off, equal to 17% of homes that went under contract—the highest share on record aside from March 2020.
For the complete Redfin report, please see Home Sales, Listings Plunge Over 20% in September—Most on Record Aside From Pandemic Start
NAR Existing Home Sales Report
The National Association of Realtors existing home sales report comes out tomorrow.
The Bloomberg Econoday consensus is 4.695 million sales at at Seasonally Adjusted Annualized Rate (SAAR), down from 4.800 million in August.
That would be a decline of 2.2 percent vs the Redfin reported 2.7 percent.
Housing Starts Resume Crash in September as Widely Expected
Seasonally-adjusted, annualized (SAAR) housing data from commerce department, chart by Mish
As noted earlier today, Housing Starts Resume Crash in September as Widely Expected
Comments on the Fed
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- The Fed actively created a housing bubble a second time, by holding interest rates too low, to long again.
- The Fed added mortgages to its balance sheet all the way to March of 2022 despite surging inflation.
Now, the Fed actively seeks to pop the housing bubble that it created. Given policy acts with a lag, the Fed is likely to overshoot with a policy error in the opposite direction.
Is this anyway to run a business?
Decline Every Month This Year
According to the NAR, Existing home sales have decline every month since January. September will not be an exception.
Weakness like this is seldom seen outside of recessions.
Inflation Out of Hand
In related news, please note Renters Surpass Homeowners in 41% of Zip Codes in the 50 Largest U.S. Cities
To understand how far behind the curve the Fed let inflation progress, please see CPI Much Hotter Than Expected Led by a Surge in Price of Food and Shelter
This post originated at MishTalk.Com.
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