Lack of affordability has pushed the share of first-time buyers to a 13-year low
For example, the COVID-19 downturn lasted just a few months, but job losses were steep, with unemployment peaking at 14.7%. Conversely, the Great Recession started in December 2007 and lasted until June 2010, and unemployment topped out at 10%.
Still, most economists predict that as people spend down their excess pandemic savings and incomes adjusted for inflation turn negative, consumers will be forced to tighten their purse strings and economic activity will peter out.Existing-home sales in May fell by 3.4% from April to a seasonally adjusted annual rate of 5.41 million. Sales were down 8.
Unfortunately, the period between now and when prices fall, will keep first-time buyers on the sidelines. The lack of affordability has pushed the share of first-time buyers to a 13-year low. Unfortunately, these frustrated house hunters will have to wait it out until either prices come down or rates retreat, or ideally, a combination of the two.It is possible, if not likely, that economic activity will slow down before we see a meaningful drop in prices.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Earthquake survivors in Afghanistan 'at risk' of disease outbreakThousands affected by a deadly earthquake in eastern Afghanistan are in need of clean water and food and are at risk of disease, Afghan health ministry says, days after UN warns of a cholera outbreak in the region
Read more »
Posthaste: Why these economists think Canada's housing correction is going to be worse than they fearedICYMI: Why these economists think Canada's housing correction is going to be worse than they feared — via financialpost Canada economy housing
Read more »
Congressional review of 'meme stock' trading frenzy shows Robinhood's liquidity troubles worse than reportedA new House report suggests Robinhood's senior leaders were blindsided by their clearing house's collateral demands.
Read more »
We’re ready for Bruce Springsteen’s return! It’s time to make some new memories with The Boss. | OpinionFor this later-in-life fan, Springsteen provides the soundtrack to her life.
Read more »
3 children dead after woman allegedly tried to stab kids during house fire, sheriff's office saysEDITOR'S NOTE: This story has been updated to correct inaccurate information provided by law enforcement.
Read more »