According to the housing sales data we looked at to spend some time before the Fed; In second hand house sales, it is seen that buyers make less purchases due to the weak housing inventory (supply driven) and high prices (inflationary pressure). The housing market is slowed down by both the decrease in supply due to the shortage of building materials and the high prices deterring buyers. Sales decreased by 2% to 5.88 million in August compared to the previous month. However, it remains above pre-pandemic levels.
Still, despite the low financing costs, rising prices lie behind the limited demand. In fact, this shows that the upward shifting curve is crossing the purchasing power limits. The median selling price of an existing home rose 14.9% from a year ago to $356,700, driven by higher sales of premium properties. There are two ways to overcome this: You will either reduce demand by raising financing costs, decreasing demand will lower prices and alleviate inflation pressure (this is hampered by rising housing construction costs, rising material prices, so price elasticity will not be much), or by accelerating wage increases, the purchase limit will reach price levels. (it means extra inflation, be careful).
Kaynak Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
