Housing Sales: How Low Will They Go?
The headline is rough: Pending home sales just fell to the second-lowest level ever recorded. The West hit a new record low, while the South is sitting just above its record low. July contract signings fell another 2.3% and are now about 30% below 2019 levels.
So. . .how low can will it go?
Yet despite the dismal sales numbers, prices remain stubbornly high. . .and buyers remain stubbornly sidelined. That's a dangerous combination. Add mortgage rates near 7% and the inevitable question is what happens next?
More price reductions.
More days on market.
More builders offering incentives.
More accidental landlords.
My guess: if this market was going to crash it would have done so already. Instead of a downside blowout, I see a long, slow grind. Whatever is going to happen will do so in slow motion.