Source: Knowledge at Wharton —
Wharton real estate professor Fernando Ferreira doesn’t believe the U.S. housing market has entered a recession.
Home sales are falling in response to rising interest rates, but there’s still a mismatch of supply and demand, he said. That mismatch is at the core of the current U.S. housing crisis, and there’s no quick fix for it.
“I don’t think it’s in a recession yet. That’s a bit of a strong word,” Ferreira said to Wharton Business Daily on SiriusXM. “The housing market has a ton of problems — historical problems, recent problems, we can go over all of them. But I wouldn’t call it a recession.”
Ferreira, who is also a professor of business economics and public policy, said the slumping sales have pushed prices down, but housing is still extremely expensive for most Americans. The median sale price of a home in July was $403,800, down $10,000 from a month earlier, according to the National Association of Realtors.
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Sincerely doubt this person knows what they’re talking about. Talk to professionals in the business………they’ll be glad to set you straight.
Yes, I totally agree! If you’re not an agent working in the field like I am, you don’t know how bad it is! The market has practically come to a halt! I am in Arizona where people want to move to & my listings are sitting with almost no showings! They are priced right in the ballpark, but one of my listings the sellers didn’t listen to me & now we are chasing the market in a down trend reducing the price as the market plummets. It won’t sell until maybe spring if Fannie Mae & Freddie Mac are accurate when they say interest rates are expected to decrease in the first quarter 2023. We’ll see about that. Sellers are still overpricing their homes & are in denial of this market. When the market was hot & a sellers gold rush up until a few months ago, that was an artificial & temporary market due to the ibuyers, and investors who are buying up properties & holding charging exorbitant amounts of rent.
The ibuyers who charged over the standard they call “service fees” & homeowners took the bait accepting their one & only offer in a hot market where they could have sold for more, left money on the table in the process. This along with the -3% interest rates overstimulated the market & are just some of the cause of that gold rush.
This article sounds like my brokers who are trying to sugar coat this new market. Most buyers can no longer buy a home, the sellers won’t face reality, the lenders and builders are scrambling now. I get emails & texts every day from them. Ask any agent…& sellers who’s homes are sitting, they know I’m right!
You are so right Elaine!
I don’t think this guy who wrote this article is out there on the front line of the Real Estate Market .
The market has slowed down.
Properties values are over inflated in certain markets, if not all.
Interest rates increased, cutting as large pool of potential buyers out of certain prices ranges.
Bigger factor the economy has been destroyed in 2 years , inflation at 9 %, gas prices doubled. Crime and homicide at an all time high. Total no confidence in the currant administration
The biggest factor why buyers will not purchase uncertainty in the future and FEAR!!!! it spreads like wild fire .
The U.S. isn’t a single market. One size never fit all. There’s plenty of people looking to be homeowners. Lots of people in stable employment. A shortage of homes for sale and stable lending practices. No reason to expect a crash.