Well, that (de)escalated quickly!

[seminole97]

US Pending Home Sales Plunge To Biggest Annual Drop Ever​

After plunging by the most since COVID lockdowns in September, analysts expected US pending home sales to tumble once again in October and they did, dropping 4.6% MoM (September was revised slightly higher from -10.2% MoM to -8.7% MoM)...



Source: Bloomberg

This the 5th straight month of sales declines (and 11th of the last 12 months) leaving the YoY drop down over 36% - the biggest annual drop ever.

"October was a difficult month for home buyers as they faced 20-year-high mortgage rates," Lawrence Yun, NAR’s chief economist, said in a statement.
"The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out a gain."
Absent the COVID collapse, this is the weakest level for the Pending Home Sales Index since the nadir in June 2010...



Source: Bloomberg

Pending home sales are often looked to as a leading indicator of existing-home purchases given properties typically go under contract a month or two before they’re sold

Existing home sales tumbled in October while new home sales rose (cancellations are not counted), and so the pending home sales print confirms the weakness that Jay Powell apparently is looking for in the US housing market.

 

[TennNole17]

I have written two contracts since august, and been outbid on both. I’ve only gone to maybe a dozen or so listings, inventory in my price range isn’t great where I’m looking. My purchase power from interest rates has dropped (somewhat) significantly in that time frame also.

 

[funksouljon]

I have written two contracts since august, and been outbid on both. I’ve only gone to maybe a dozen or so listings, inventory in my price range isn’t great where I’m looking. My purchase power from interest rates has dropped (somewhat) significantly in that time frame also.

That sucks, I have a couple co workers who have struggled over the last couple of years and its either settle or keep renting.

I know many don't like it, but the market needs a correction to correct the prices. Esp our local market being hotter than national average, if I am going to "move up", I want the market to come back to reality. Unfortunately, I think my expectations can't be met here.

Average Sales Price of Houses Sold for the United States

Graph and download economic data for Average Sales Price of Houses Sold for the United States (ASPUS) from Q1 1963 to Q3 2022 about sales, housing, and USA.

fred.stlouisfed.org

 

[Finance85]

Well, the Federal Reserve plan seems to be working for the housing sector...

 

[Hammer93]

Well, when the interest rates go back down some, there is going to be an unbelievable pent-up demand and so the prices are going to go right back up. Housing prices are not going to continue to go down. They are going to skyrocket. There is not suddenly going to be more inventory of homes to offset the demand that ultimately will show back up. It's going to be worse. Frankly, if you are needing an upgrade, you should buy now and refinance in a couple of years when the interest rates go back down.

 

[fredjr82]

Sold my first home in late August/early September and bought a bigger one. Couldn't have timed that better as I got quite a bit more that what the house appraised for. If I would have waited even another 30 days, that would have not been good.

 

[Joes Place]

 

[IowaPackFan]

I have written two contracts since august, and been outbid on both. I’ve only gone to maybe a dozen or so listings, inventory in my price range isn’t great where I’m looking. My purchase power from interest rates has dropped (somewhat) significantly in that time frame also.

Can’t you just buy one out of state and drive it over?

 

[IowaPackFan]

View embedded media

That’s a bit misleading as the personal consumption growth slowed due to the high inflation. The international trade increased while imports slowed.

 

[TennNole17]

Can’t you just buy one out of state and drive it over?

I’ve considered it 😂

 

[Joes Place]

That’s a bit misleading as the personal consumption growth slowed due to the high inflation.

The US economy grew. That's not "misleading".