Friday, July 26, 2019

Groundhog Day.

Bay Area home prices, sales tumble.

“Despite the lower cost for some, plus a healthy economic backdrop, the housing market remains sluggish with activity dropping across the home-price spectrum,” said CoreLogic analyst Andrew LePage. “This suggests many would-be buyers are still priced out or are concerned about buying near a possible price peak.”

Monthly sales figures for June were lowest for the month since 2008, when the real estate market collapsed and the U.S. economy dove into a deep recession.

Year-over-year sales dropped 14.6 percent in Santa Clara County, 21.6 percent in Contra Costa County, 14.9 percent in Alameda County, and 21.7 percent in San Francisco County, according to CoreLogic." emphasis mine

Maybe we never really left the recession and the Trump bump was just a temporary reprieve. All year the data has been compared to 2008/9. Yet if you talk to people - they think the economy is fine. But the charts don't think the economy is fine. And I believe charts over people.

5 comments:

  1. Saw this story on CNBC:


    "Foreign purchases of American homes plunge 36% as Chinese buyers flee the market"

    Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, caused a stunning drop in foreign demand for American homes.

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  2. Do like Dr. Suess did:

    NSFW!!!!!!!!

    https://www.youtube.com/watch?v=Z8EySxk-Gx0


    snickers

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  3. Mark - It's sort of unbelievable China can make up that much of our market. That is almost 1/3rd. I'm not saying it's not true - only that is an unhealthy balance if true.

    Leaperman - I'm not sure what Dr. Suess did even though I watched the clip. Is robot chicken still on?

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  4. Hard to believe but true. Same in Canada and Australia. The greed of the real estate industry drives this.

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  5. Yeah. In my heart I know you are right. That just seems like an unhealthy amount. Especially when it's so hard to get a house for every day Americans.

    ReplyDelete