A white-picket paradox (Jon Lovette/Getty Images)
Zillow-scrolling has us pillow-sobbing… The US has come down with a case of housing blues: Americans are either sad because they can’t buy a house or sad because they did buy a house. Nearly three in four homebuyers have at least one regret related to their recent home purchase. Meanwhile, wannabe buyers are getting priced out. Let’s unpack that:
“Squid Game” vibes… No one wins in this market. Prospective buyers lose: home prices in June were 18% higher than a year earlier, a historically steep jump (plus: mortgage rates are wild). Owners lose too: home prices dipped 0.77% in July — sounds negligible, actually the largest monthly decline since 2011.
It’s a chill, but likely not a crash… Homeowners are way more cash flush now than they were when the housing market crashed in ’07 (flashback: prices plunged and millions owed more than their homes were worth). Mortgage leverage is at a record low, and losing some paper value on a home won’t harm most Americans. While housing inventory is rising at a record pace, home supply is still relatively tight, so prices likely won’t crash.