© Mike Hensdill/The Gaston Gazette / USA TODAY NETWORK
Syndication: Gaston Gazette
(77WABC) — Sales of new single-family homes plunged by 8.1% to 590,000 units in June, according to new commerce department data out Tuesday — the lowest level since 2020.
Ian Shepherdson, a chief economist at Pantheon Macroeconomics told The New York Post single-family listings sitting on the market are up 40% in the last four months due to sky-high prices and rising mortgage rates. He’s predicting a major shift to lower home prices due to the glut.
“The market is adjusting to a new reality, with much lower sales volumes and far more inventory, he told the Post. “Prices, therefore, have to adjust to the downside, likely quite substantially”
Taylor Marr of RedFin told 77WABC that while home sales plummet, the number of rentals and rental prices are up especially in the Northeast.
According to Pantheon’s calculations, home prices are 15 to 20% overvalued compared to incomes – setting the table for major declines.
