the US housing crash is treading water...

the US housing crash is treading water...
Ok maybe that's being a little overdramatic...

The market is trying to crash. Some areas are crashing (commercial office and multifamily I'm looking at you) but overall it's up against some headwinds. Price growth is trying to come down but there are things standing in the way. Kinda like trying to walk upstream in waist deep water. Or like treading water

According to the National Association of Realtors, the median sales price has already come down around 12% nationally from the peak to the trough, and it's done that in the face of extremely tight inventory levels

 
If lending standards continue tightening as they have  been, it will continue to shrink the pool of eligible home buyers leading to less and less home sales.

That will continue to shift the balance between supply and demand more in the favor of buyers. But with less buyers able to buy less homes will sell contributing to more and more price drops.

 

Guys and gals:
if you are thinking about selling at some point this year, now is the time to get it on the market. 

if you're thinking about buying a house, you might seriously consider holding off because you're about to get a lot more options and sellers might get a lot more willing to negotiate. I don't expect rates to get terribly worse than they are now but I don't expect them to get any better for a long time, if ever. 

Here's a chart showing house affordability of owning vs. renting (the higher up on the graph the less affordable):

 

You can see here that renting a home is considerably more affordable than buying right now, and although throwing away money on rent isn't ideal, the first few years of a 30-year mortgage mostly goes towards interest anyway so it's a bit of a wash.

That being said, if you know you're going to be living somewhere for the next 5-10+ years, we should hopefully be in recovery by then.

For those of you living in portland, here are the portland numbers:

 
Click Here for the Full Comprehensive Report

5 most expensive sales this month

Real Estate in the News
-Redfin
 
Mortgage Payments now Eclipse Apartment Rents in the U.S.
-World Property Journal
-Keeping Current Matters
-Zillow News

Thinking of buying or selling?

We are happy to sit down and talk about it. Let us know if there is anything in the world we can do for you

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