Today’s podcast goes over a topic near and dear to my heart! What did the Federal Reserve mean by housing reset? Of course, I have a structural bias here because the unhealthy housing market in 2021 became savagely unhealthy in 2022 due to historically low inventory levels, which created forced bidding. I am hoping more financial reporters start asking the Federal Reserve members what does this mean?
Since the unhealthy aspect of housing started, I need total inventory levels to get back to 1.52-1.93 million to remove the savagely unhealthy title from the marketplace. Yes, this is still the four-decade low in total inventory levels going back to the 1980s, and our population has grown a lot since then. However, it’s a more functioning housing market than we have now.
(Per the last existing home sales report)
The only reason median days on the market are at all-time lows, and 82% of homes are sold within a month, is not because of booming housing demand; it’s a lack of product.
Remember, purchase application data is below 2008 levels today.
CNBC interview on this topic https://www.youtube.com/watch?v=D8r5ui0Yc9s
I am no longer writing for my blog; all my work can be found at HousingWire; you can use my LoganVIP50 code to join HousingWire Plus. Also, I can’t join Twitter Spaces, a podcast, or an interview unless it goes through Press@HWMedia.com first.
My recent article goes over the most recent jobs data, and since all six of my recession red flags are up, I am tracking other data lines now more closely and not bothering with others.
I hope to see some of you soon as I will be traveling to Las Vegas, Boston, Miami twice, Nashville, and San Diego and speaking at other events before the year ends.
The 2022 HousingWire Annual Event will be held in Scottsdale, Arizona, October 3-5th.
Please use my Logan22 code for a discount to attend. Registration here.
“We have always held to the hope, the belief, the conviction that there is a better life, a better world, beyond the horizon.” Franklin D. Roosevelt
Logan Mohtashami is a Lead Analyst for Housing Wire, financial writer, and blogger covering the U.S. economy with a specialization in the housing market. Logan Mohtashami, now retired, spends his days and nights looking at charts and nothing else