Published by FOX Business | December 30, 2022
55% of Americans say they cannot afford to buy their home in today’s market, according to the CATO Institute 2022 Housing Affordability National Survey
The U.S. housing market is experiencing its second-biggest home price correction of the post-World War II era.
Macro Trends Advisors founding partner Mitch Roschelle attributed the massive correction to Americans’ uncertainty for the markets and their “uneasiness” regarding the economy. He explained on “Varney & Co.” Friday that the “shoe to drop” would be if the nation starts to see a rise in unemployment, which could cause a “leg down” in the housing market.
“A couple of things are going to cause it to turn in the opposite direction, meaning home prices are going up. One is certainty. And when you don’t know if interest rates are going to go up or not. I think that is what is driving a lot of people away from buying because they just don’t know if rates are going to be cheaper in two months, and they’re just going to wait.”
— Mitch Roschelle, Macro Trends Advisors founding partner
“And the other thing is uneasiness regarding the economy. And I think the shoe to drop there would be if we start seeing layoffs, and we start seeing unemployment starting to rise, I think that could be something that causes a leg down in the housing market in a big way,” he continued.
Roschelle’s comments come following the massive power shift happening in the real estate market. Arguing that the power has “completely shift[ed]” away from the sellers, further “constraining” the nation’s struggling housing supply.
In addition to the real estate markets’ supply and demand problem, the average home price is expected to plummet from its pandemic-induced peak.