Housing market: Top economist escalates warning as homebuilders are ‘giving up’

In a series of posts at X last week, he indicated that he had sent a “yellow sanctuary” in the housing market just a few weeks ago, but now he believes that “red glow” is more convenient because expectations are already deteriorating.

Zandy warned: “House sales, home construction, and even home prices is scheduled to decrease unless the mortgage rates are financially decreased nearly 7 %.” “This, however, it seems unlikely.”

The current homes sales have risen unexpectedly in May, but still have the slowest pace of sales for any May since 2009, and there is additional evidence that the busy spring season usually was a bust.

Meanwhile, sales of the new one -family homes sank 13.7 % in May of the previous month, and one family residences begin by 4.6 % in June, with permits down.

Zandy said: “House sales have already been depressed, but home builders that provide price purchases were supporting sales,” Zandy said. “They surrender. They are simply expensive. There is a great knowledge that many builders delay their land purchases from land banks. New homes sales and beginnings, and the completion will decrease soon.”

He added that the prices of homes have also withstood well, but are now going on both sides, and are able to decrease the mortgage rates that are less than 7 % of the demand for crushing.

In fact, the latest home price report showed a 0.3 % monthly decrease in the index of 20 cities in April, which is more descending than a decline of 0.2 % than March.

The most recent survey of the housing market index from the National Length Association showed that 38 % of builders reduced prices in July, up from 37 % in June, 34 % in May and 29 % in April.

Increased pressure on prices is to increase the supply. The household menus climbed, even that homeowners who had low -birth mortgage rates ultimately needed to put these properties for sale and buy new homes at higher rates.

“Given their demographic positions and job, closed home owners must move,” Zandy added. “They can only work on these needs for a long time.”

The circumstances are so lukewarm that many of the owners of the home who included their properties get them out of the market after they failed to find a price of the price they were offering.

The deletion increased by 35 % on an annual and 47 % year on an annual basis in May, which exceeds the growth of active listing by 28.4 % and 31.5 %, respectively, according to the Reallytor.com report this month.

For Zandi, everything adds to the bad news of the public economy, which already feels the strains of president Donald Trump’s tariff.

He said, “Housing will soon serve as full winds of wider economic growth, which adds to the growing list of reasons for concern about the prospects of the economy later this year and early next,” he said.

Citi Research analysts issued a similar warning in May, when they indicated that the economist Ed Limer, who died in February, published a paper in 2007 that stated that housing investment is the best pioneering indication of the upcoming recession.

CITI indicated less permits to build one family home and increase the effective supply of homes in the market amid weak demand. The prices of the middle homes for current homes were declining on a monthly basis.

City said: “The constant housing investment is the most sensitive sector for the interest in the economy and now indicates that the mortgage rates are about 7 % very high so that the expansion cannot be maintained.”