The U.S. Housing Market Looks Headed for Its Worst Slowdown in Years


#1

Not sure if anyone has posted this already. Another article beating the housing slowdown drum.

They were fed up with Seattle’s home bidding wars. They were only in their late 20s but had already lost two battles and were ready to renew with their landlord. Then, in May, their agent called.

Suddenly, Redfin’s Shoshana Godwin told the couple, sellers were getting jumpy, even here in the hottest of markets. Homes that should have vanished in days were sitting on the market for weeks. There was a three-bedroom fixer-upper just north of the city going for $550,000, down from more than $600,000. They made the leap in early June and had closed by the end of the month, for list price.

The U.S. housing market – particularly in cutthroat areas like Seattle, Silicon Valley and Austin, Texas – appears to be headed for the broadest slowdown in years. Buyers are getting squeezed by rising mortgage rates and by prices climbing about twice as fast as incomes, and there’s only so far they can stretch.

“This could be the very beginning of a turning point,” said Robert Shiller, a Nobel Prize-winning economist who is famed for warning of the dot-com and housing bubbles, in an interview. He stressed that he isn’t ready to make that call yet.


Seattle Getting Some Chinese Love
#2

#4


#5

“Heading into slowdown” and “Not a bubble” can both be true.


#6

this is like the stock market… these pullbacks… are normal.


#7

I don’t know about South Bay markets, but up here in SF I have a sense things are not as crazy as last year.


#8

We haven’t even recovered in most of the US from last downturn inflation adjusted. Shiller is a grim reaper in a shitty housing market. New Haven will never have a real estate boom.


#9

south bay is the same. been saying this since may/june.


#10

Looking at the inventory graph, isn’t 2013 / 2014 were also hot market (at least that’s what I felt when I bought it) so even inventory goes up to that level, it will still be hot? Maybe not red hot, but still seller’s market.


#11

South Bay is crashing, SF is slowing


#12

I am feeling good buying next year instead of this year, or even maybe the year after next year. Let me roll my money in the stock market for a bit longer… :smile:


#13

i don’t know if it’s called crashing, most likely not.


#14

Then there’s facebook… waiting… crying… :slight_smile:


#15

I would be depressed like Shiller if my 4 Bd house was only worth $169k

https://www.zillow.com/new-haven-ct/home-values/


#16

That chart is national. Here in Bay Area yeah we are still in seller’s market, but less nutty.


#17

Definitely not. There was a pause in June, but things are going pending quickly since mid-July.


#18

It will roar back! I promise! :cowboy_hat_face:


#19

school season… then it’ll take another pause.


#20

Sold for $100k in 2007. Sold for $60k in 2017.
Walking distance to Yale

If you live near Yale, you would never believe that houses appreciate. Hence the Shiller gloom and doom

https://www.zillow.com/homedetails/24-Auburn-St-New-Haven-CT-06519/57969025_zpid/


#21

why is cheap housing bad :slight_smile: i wish it was cheap… everywhere.