Wells Fargo says that the sale of houses has been delayed to levels that are last seen in the aftermath of the large recession.
In contrast to 2008, the wider economy remains strong – house prices do not deposit and unemployment is not rising.
MarchThe housing market still suffers because potential buyers cannot pay the high house prices Together with high mortgage interest.
In the meantime, sellers will not admit because they cannot afford to lose their low mortgage interest rate. This means that not many people currently buy or sell houses.
In January the total housing sales reached 4.7 million, a figure that Wells Fargo -economists say that “only modestly over the weak rate was experienced between 2008 and 2010.” Before the pandemic, the monthly home sales amounted to an average of approximately 6 million.
The demand for housing rose during the pandemie and sent prices and mortgage interest to new highlights. But now high costs and loans keep both buyers and sellers on the sidelines.
Homeowners who have obtained a low mortgage interest during the Pandemie or who have paid off their house are not sold because they do not want to give up their low rates.
“The lukewarm pace of housing sales cannot be accused of a recession,” says the report.
Wells Fargo says that the sale of houses has been delayed near the pace of how they were in the aftermath of the big recession, while not many people bought or sell houses
'Instead, the most important factor that weighs on residential activities remains unfavorable affordability conditions.
In addition to high mortgage interest rate, house prices continue to rise. '
Since February 2020, house prices have risen by 45 percent.
Moreover, the average fixed mortgage interest rate of 30 years is 6.67 percent. In 2020, the mortgage interest rate was only 3 percent.
The mortgage interest-in-in is the main reason for the slow sales percentage, because they take into account the largest share of total home sales.
The pace of the slow turnover is expected to stay that way in the coming years.
“In view of affordability, most buyers are expected to remain weak and not far from the low levels in the aftermath of the financial crisis,” Wells Fargo Senior Economist Charlie Dougherty told Fortune.
In the meantime, in January, Wall Street gave a horrifying warning that American houses sell 35 percent higher than they should be.
Wells Fargo Senior Economist Charlie Dougherty
Green Street Advisors of Real Estate Analyzes studied the equity performance of two listed companies that have and rent out more than 137,000 single -family homes throughout the country.
Investors believe that the houses are owned by invitation homes and American houses 4 rent are too expensive.
According to the analysis of Green Street, an average house in the metro areas where invitation homes has for $ 415,000.
The share price, which has refueled 10 percent in the past year, suggests that investors think that $ 310,000 is what the company's houses are actually worth.
In general, the list and mortgage prices remained high in 2024 and only 24 percent of home buyers were First timers in 2024 – the lowest, according to the National Association of Realtors.
