Pantheon Macroeconomics Housing Market, ‘the bulk of the drop in home prices is yet to come,’
Recently, the economic research consultancy organization called “Pantheon Macroeconomics” issued a report in which it said the US Housing Market has bottomed and argued that the housing market is still not near experiencing a true rebound. In fact, Pantheon Macroeconomics believes that the bounce of the US Housing Market shown this summer was a head fake. Yes, you heard it right, when an economic firm like Pantheon Macroeconomics makes such claims, it can not be taken lightly and ignored at all. You should also keep in mind that when Pantheon Macroeconomics says “US Home Prices”, it is actually talking about a national aggregate. You are asked to stick with this report and follow it till the end for more details. People should know what Pantheon Macroeconomics learned about US Housing Market’s bounce this summer. Scroll down the page and take a look below.
Pantheon Macroeconomics Housing Market
The senior American economist at Pantheon Macroeconomics named Kieran Clancy wrote in the report, “We are baffled by the emerging narrative in the commentariat that housing is now recovering because it isn’t. Home sales jumped at the start of the year, lagging the late-2022 dip in mortgage rates, but they have fallen more recently thanks to the latest back-up in rates, and mortgage applications signal that they will soon dip to a new cycle low,” Continue reading this article and know more details.
The biggest problem or hurdle to the real recovery in the US Housing Market is affordability. Clancy stated that the mortgage rate of the last year sent shock waves along with the more than 40% spike in the national home prices during the Pandemic Housing Boom. Since the 2006 housing bubble peak, it was the first deteriorated housing affordability that was ever seen. Clancy also wrote, “The broader point here, though, is that the bulk of the drop in home prices is yet to come; the lagged effect of the plunge in sales points to a steep and sustained drop,”
The direction of travel is always clear but there is uncertainty in the speed and scale of the adjustment in prices. The economist at Pantheon Macroeconomics stated the bulk of the drop in home prices has not come yet. The prices of the national house will further decrease and the US Housing Market was at the bottom earlier this year. While firms like CoreLogic and Zillow pointed out that national house prices and new home sales are rising again. Stay tuned.
