Millennials I hope living in your parent’s basement watching reruns of Bernie’s speeches and protesting like chimps is what your parents want forever. Yes home buying is slowly declining and it will crash again. I have warned against this for months but just like last time the big guys will come on television until the last minute and say everything is alright. Remember the day before the housing crash last time? Look up the Fed chairmen’s speech the day before.
Signed contracts in April tumbled 5.4% YoY (NSA). This is the biggest drop in pending home sales since August 2014 and comes on the back of last week’s disappointing housing ‘recovery’ data as perhaps Fed- and Trump-driven mortgage-rate rises have finally hit the American ‘pocketbook’.
This is the second monthly drop in a row (-1.3% MoM) and comes with downward revisions for the last few months.
This coming from Zerohedge.com, this points directly at millennials, we have had an entire generation told to go to school for whatever makes them happy. Of course children who are told go out and be an artist are shocked when they end up working at Walmart for barely above minimum wage, and blaming the rest of the world because they are 100 grand in student loan debt. Granted these kids were always given trophies because they participated, and now the country will reap what weak parents wrought on the world.
This also has another cause, the government artificially inflating the market and forcing banks to give people loans when the income isn’t there. If you only make 16,000 a year you probably shouldn’t buy a house. Now this is starting off slow and it is only one of the many markets that are in trouble. Eight years of failed liberal policies and not allowing the market to correct itself the first time have caused this.
“Much of the country for the second straight month saw a pullback in pending sales as the rate of new listings continues to lag the quicker pace of homes coming off the market,” he said.
“Realtors are indicating that foot traffic is higher than a year ago, but it’s obviously not translating to more sales.”
“Prospective buyers are feeling the double whammy this spring of inventory that’s down 9.0 percent from a year ago and price appreciation that’s much faster than any rise they’ve likely seen in their income.”
US housing data is at its worst since May 2016…
So like I said before stagnant wages because people refuse to learn new skills that improve their human capital have affected this as well as an entire generation of progressive policies. I hope this time they allow the market to correct itself but it is likely as it always has been with republicans and democrats that they will prop the market back up and kick the can further down the road. Eventually we will have a great depression again due to the fact that the government is interfering in our capitalist economy.