US real estate market drying up
Oct 23, 2023
According to John Auther’s Bloomberg column, the latest numbers on monthly sales of existing homes in the US show they are selling at an annualized pace barely above 3 million units. Barring one bad month after the GFC, this is the worst figure in 27 years. It shows to what extend the US real estate market is drying up as the 30 year fixed mortgage rates top 8% and demand for home loans is diving. To us, it looks more and more realistic house prices will have to come down in the medium turn.