See also
26.07.2022 07:06 AM
Today we will look at the fundamentals for the home prices, home starts and new home sales as we see some clear risks here going forward. As we can see from the chart above, the home prices in the US are at an all-time high and much higher than it was back in 2005 - 2007 at the former peak. With rising rates and both home starts and new home sales descending, the current uptrend in home prices is not sustainable.
It's not unusual that home prices continue to move higher whilst both home starts and new home sales already have started to descend as home prices are a laggard indicator. The denial amongst home sellers is clear. Once they have to adjust to the new environment, it will be painful as there will be a lot of catch-ups to do.
We expect home prices to fall to between USD 280.000 - 320.000 from the current level of USD 407.600. A drop in home prices like that will spill over into the equity markets just like we saw back in 2008 - 2009.
Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.
If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.
Why does your IP address show your location as the USA?
Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.
We are sorry for any inconvenience caused by this message.
