Sales of previously owned homes have fallen for seven straight months!
The longest such stretch since 2007. But the effect of that weakness will be much smaller than in 2008, says Wells Fargo Investment Institute.
Tweet on slump on owned home sales
Sales of previously owned homes have fallen for seven straight months, the longest such stretch since 2007.
But according to Wells Fargo Investment Institute the effect of that weakness will be much smaller, than in 2008! pic.twitter.com/FiQdUOwVlB
— The_Journalbiz (@the_journalbiz) October 11, 2022
WFII Chart on correlation w housing crisis 2008
The supply of homes is very low relative to what it was before the crisis, Wells Fargo notes. Consumer balance sheets, meanwhile, look much healthier.
- “We do not expect a repeat of 2008,” WFII says in a report.
The jump in mortgage rates has made home ownership less affordable for both first-time buyers and existing homeowners.
But unlike during the global financial crisis of 2007-08, WFII doesn’t see this year’s decline in home sales necessarily being the start of a broader crash in the housing or credit markets.