Real estate thoughts

Real estate thoughts

Nationally home sales were above expectations in July; however, the three previous months were revised down, combined. New home sales are back to pre-pandemic levels.

With little existing home inventory, it seems likely that new home sales bottomed in mid-2022, and will be up year-over-year in 2023, even with mortgage rates above 7%.

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Both the New York Times and the WSJ wrote articles on how the government is expanding its programs to assist unemployed homeowners, as well as borrowers who owe more on their mortgages than their homes are now worth. Both websites received both positive and negative responses. Here are a few:

WSJ: “Here’s a heretical thought: What if Washington had simply let housing prices fall on their own to find their natural bottom? The pain would have been more severe more quickly for some owners who bought more expensive homes than they could afford. But the pain might also be over by now as housing markets cleared faster, and housing might be contributing to a healthier economic expansion.”

Tara Siegel Bernard from NYT: “But it made me think about what would be at stake if the government did noting at all. A government should consider the greater good over the long term, of course, and not just the immediate question of what is fair.”

What are your thoughts?