Housing Market Index Crash
Each month, the National Association of Home Builders partners with Wells Fargo to gauge the health and outlook of new home builders. The monthly survey looks at sales, potential buyers looking for houses, and other factors in compiling a monthly index. The index has shown a downward trend for much of 2022. In July, we saw the Housing Market Index Crash. Not a little drop. A crash. Buyers looking at new houses in September are only about 1/3 of the number looking at the end of 2021. The index is now at its lowest point since coming out of the prior crash. Price appreciation looks to be trending toward the trajectory of 2006 through 2009. What is the trend like compared to prior recessions? The trend looks much worse!! Be prepared to profit, buy or find safe strategies with a copy of Winning Mortgage, Winning Home from Amazon.
Here’s the reality: the housing market is absolutely in a recession in the sense that sales have been receding/declining in a meaningful way for more than 6 months. Pending Sales peaked last October and Existing Sales peaked in January. If we want to use “bear market” metrics of 20% contractions, both easily meet the requirement.
Sales and Trends
Buyer traffic and interest fell dramatically. Should you jump in and buy? Learn what the housing market index crash portends and what to do with a copy of Winning Mortgage, Winning Home.
More Borrowers Coming From Forbearance Having Trouble
According to Black-Knight, a mortgage solutions and data firm, more and more borrowers who exited, or have tried to exit, forbearance are having trouble. The falling blue bar shows that fewer and fewer of those who have exited are paying on time as agreed. A growing percentage of loans have become Troubled (yellow), Delinquent (orange) and Active Foreclosure (green).
