Pending home sales tracks volume. How many homes are being sold at a period of time compared to a prior month or prior year.
Apparently that volume is falling off a cliff with September dropping off 10% compared to August and 31% compared to last year.
Further details are in this news https://www.cnbc.com/2022/10/28/pending-home-sales-fell-10percent-in-september-from-august.html
Prices have started to flatline and in some areas go down, but many they are still going up.
I'm still seeing it in South FL and everything is seeing robust interest, especially at the lower price end as many buyers had to drop down with the rise in interest rates making affordability of the McMansions are problem.
So geographical market, price point and several other factors go into a local market.
Do I think the overall market is softening, yes I do. Am I looking for deals over the next 12-24 months - you bet!
However, I have not seen a noticeable drop off in prices in the markets I invest in. I'm sure it has happened many market already though that were notoriously overpriced and known for boom-bust cycles.
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That's quite a significant drop and I wonder if this will replicate also in Europe. Around here the market is still on an uptrend and I simply cannot understand why it happens. Maybe it takes a while for the falling price wave to hit Europe as well...
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Thanks for this information on home sales
Interesting market dynamics. Desirable places seem to get more desirable, even in an economic downturn because someone is always making money.
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Interesting, I wondered what the effect of the rate hikes would be those on the ground like you. I would love to see what has happened with the use of Tokenization as a method of raising funds in the last year. I remember a very large resort in Colorado and a big university student dorm in England made the news by raising funds by selling tokens and then performing multi-million dollar renovations to improve the asset. The beauty of the Tokenization route touted at the time was no mortgage payments and token holders simply wait until market conditions are right to sell the tokens or the asset holder does buy backs. It was like an indefinite loan, with the asset holder retaining a majority share of the tokens.
I wonder if you have run across any such deals or considered this yourself?
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