New Home Sales Less Than Expected

[Tom D]

86% of consumers believe it's a bad time to buy a home: Fannie Mae

CNBC's Diane Olick joins 'Power Lunch' to discuss a new survey data from Fannie Mae on housing sentiment.

 

[J Grant]

Buyers tend to buy in herds and then stop in herds.

 

[alebrewer]

Herd mentality is a tough thing to stop once it gets rolling.

 

[Charles West]

They are buying in my area. A young family picked up a basketcase of a place, a 52 year old completely original fixer upper for $850,000 with very little down, big mortgage payment with equally big property tax hit of about $1,000 a month. Place was on the market for 5 days, 17 offers.

 

[alebrewer]

There is a rapidly growing number of RV resorts - and subsequently - permanent RV families in my area. While there is no doubt the phenomenon is taking place in response to the continued decline in housing affordability, I believe it points to an underlying social change as well. I think, culturally, we are seeing something of a downturn in materialism. IOW, we're witnessing - maybe for the first time since WWII - a cultural shift AWAY from material goods. Whether the cause is a revolt against materialism, the desire not to 'live to pay the rent', or whatever, a large portion of Americans are choosing to be content with less. The tiny home craze is yet another evidence of the shift.

 

[Terrel L. Shields]

Herd mentality is a tough thing to stop once it gets rolling.

Men go mad in herds but come to their senses one by one - MacKay

Add to that this... Listings have risen by 32% year over year May 2023 to May 2024. People are simply not buying at these prices except where they have to or where they have been offered exceptional jobs.

 

[Tom D]

four of the 11 most unaffordable housing markets in the English-speaking world are in California — and seven are in the US and Canada, a new study has found.
San Jose, Los Angeles, San Francisco, and San Diego are all "impossibly unaffordable," according to the 2024 Demographia International Housing Affordability report.

The researchers classified a ratio of 9 or higher as "impossibly unaffordable," saying it was virtually unfeasible for a middle-income housing to raise enough financing to afford a typical home in the area. That level of unaffordability didn't exist three decades ago, they noted.

 

[J Grant]

four of the 11 most unaffordable housing markets in the English-speaking world are in California — and seven are in the US and Canada, a new study has found.
San Jose, Los Angeles, San Francisco, and San Diego are all "impossibly unaffordable," according to the 2024 Demographia International Housing Affordability report.

The researchers classified a ratio of 9 or higher as "impossibly unaffordable," saying it was virtually unfeasible for a middle-income housing to raise enough financing to afford a typical home in the area. That level of unaffordability didn't exist three decades ago, they noted.

in very desirable cities such as mentioned, the houses are affordable for those that can afford them ! Since the houses are snapped up and sold as soon as some are on the market (I have a friend who lives and appraises in San Diego.

The problem is not elite or wealthy areas; the problem is that even plain houses in ordinary towns such as suburban FL are far less affordable to working or lower-middle-wearing people.

 

[shrubberyvaluation]

It's taking more time per appraisal now for me. In most areas all the signs of increasing prices but limited sales to see the actual percentage of the trend. At least during the boom there was plenty of market data.

 

[Terrel L. Shields]

It's taking more time per appraisal now for me

With increased liability issues, increased demands from UWs, increased demands to show the support, and now, the general lack of sales, the job has got harder and riskier...and all for less money.