Written by Rick Sharga, EVP of Market Intelligence for ATTOM
From the November/December 2022 issue of the Housing News Report
There’s a lot to talk about today when it comes to the housing market – most of it, unfortunately, not very positive. Sales of both existing and new homes are off considerably from a year ago, home price appreciation has virtually disappeared, affordability has declined due to mortgage rates doubling, and homebuilder sentiment is approaching record lows, which in turn has led to a decline in housing starts. As we exit the year, it’s likely that we’re going to see the number of home sales continue to fall in 2023, and it’s also likely that home prices will decline at least modestly on a national basis, although prices may continue to inch up in areas of the country experiencing population and job growth.
This slowdown in the housing market is due to the aggressive actions taken by the Federal Reserve Bank in its efforts to get runaway inflation under control. But is the Fed doing the right thing? And has it already done unnecessary damage to the housing market?
In this issue, The Year in Review covers 2022 market trends, and what to expect in 2023. Beacon Economics Founder Christopher Thornberg takes a look at what the Fed has done – and its effect on the economy and the housing market. We share insights from ATTOM’s housing data on home seller profitability declining from recent peaks. And we ask an important question: Will Record Equity Save the U.S. Housing Market?
Best wishes from all of us at HNR as we enter the holiday season and prepare for what we hope will be a recovering market in 2023.