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DID YOU KNOW?

U.K. inflation is on course to exceed 18% in January 2023 as the UK’s energy price cap enters the stratosphere, Citi economists are projecting. (CNBC)
 
In COMPASS's Q2 results we clearly stated that the NAR had revised its methodology for calculating market share. Some in the media ignored/omitted this important point (shocking!). The reality is COMPASS market share grew from 3.4% in 2020 to 4.5% in  2021 and rose to around 4.9% in Q2 2022.....an increase of about 44% in 2 years.
 
Across the US, 21% of home sellers dropped their asking prices in July – the highest share since tracking in 2012. The shares of homes with price drops in July compared to one year ago increased in 94 of 97 metro areas surveyed. Overheated markets such as Denver saw 58% of listed homes experience price drops, and Salt Lake City, saw a 54.8% share of cuts. Other metro areas with a share of home price cuts above 50% included Tacoma, Wash.; Tampa, Fla.; Sacramento, Calif.; Indianapolis, and Phoenix. Let's also not forget some of these ASKING prices had assumed 5-20% escalations over the last selling price in the area.....much of this is simply the scaling back of excess pricing ambition/exuberance.
 
 
“While consumer sentiment is now firmly 
 
in recession territory, consumers are not 
 
following through on their feelings,” -
 
Aneta Markowska, Thomas Simons JEFFRIES
 
 
More DEflation? Some of the bottlenecks at beef processing plants that drove prices up over the past two years have eased, improving the U.S. beef supply,....causing double-digit price declines YOY....(WSJ)
 
Housing is an important indicator of economic activity for several reasons:  it bears a direct relationship to the consumer’s ability and willingness to borrow and spend. A slowdown in housing at this point doesn’t necessarily mean a big wave of mortgage delinquencies or foreclosures are coming, but it does indicate consumers are likely exiting the market. That could be due to decreased affordability (increasing mortgage rates amid rising home prices), or because consumers are worried about their economic prospects in the near-to-medium term…or both. Either way, it’s not exactly a signal of increasing growth and prosperity. A slowdown in this sector typically results in a ripple effect across other sectors such as construction, building materials, and retailers closely tied to home improvement, furniture, or home electronics. If fewer homes are being built, fewer workers are needed to build them, which has an effect on unemployment. (Liz Young, SOFI)

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