Biden Crashes The Housing Market?

Here’s what we know…

If you’re a real estate agent we feel your pain. Thanks to President Biden, U.S. existing home sales continued to drop for the 11th consecutive month in December as mortgage rates continue to increase along with inflation and steep home prices.

All of these problem have combined to destroy consumer demand from the housing market and economists are beginning to worry.

According to Fox, the sales of previously owned homes dropped by 1.5% in December when compared to the previous month to an annual rate of just 4.02 million units.

Currently, existing home sales are down 34% when compared to December 2021. 

National Association of Realtors chief economist Lawrence Yun explained, “December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates. However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”

At the end of December there was an astounding 970,000 homes for sale which is a decline of 13.4% from November.

Chief economist at LPL Financial Jeffrey Roach explained, “The housing market is reeling from years of under-building, economic uncertainty and high interest rates. Given the confluence of these factors, housing affordability is the lowest since the mid-1980s.”