Former Treasury secretaries send urgent warning on debt limit
America’s housing market is still in a weird place. The pandemic spurred a buying frenzy that drove the cost of buying a home so high that even more people are priced out of the nation’s real estate.
“Everyone knows about shortages that we’re experiencing these days,” and housing is on that list, too, said BMO Senior Economist Jennifer Lee in a note to clients.
Actually, it’s been that way for a while.
“Strong demand, supply can’t keep up, prices rise, you know the drill. And those factors combined pulled US existing home sales lower in August,” Lee said.
Existing home sales dipped last month, falling to 5.9 million from 6 million in July. This slight drop could be a harbinger of a long awaited slowdown in the sector.
“After reaching a pandemic-driven frenetic pace last year, the housing market has stabilized,” said PNC senior economist Abbey Omodunbi. “House prices have increased at an extraordinary pace, leaving many potential buyers on the sidelines.”
In the near-term, low borrowing costs, improvements in the job market as the economy recovers and options to work remotely will continue to fuel demand for homes, Omodunbi added.
Source: http://rss.cnn.com/~r/rss/cnn_topstories/~3/uyGAngg1s3I/h_3af31783f5c15bedc26da46b5bfbe1ca
