The Mortgage Bankers Association tracks a data point called ‘Mortgage Purchase Applications’. This data point tends to predict future Home Sales and just crashed by 17% YoY.
Why? Well, surging home prices and rising mortgage rates has priced many home buyers out of the Housing Market. And now housing demand is predictably declining. Particularly in markets on the West Coast of America.
Boise, Idaho: Inventory in Boise is up over 70% YoY and there is a huge surge in price cuts. Buyers are dropping out and sellers are getting desperate given the huge increase in new listings.
Salt Lake City, Utah: Inventory in Salt Lake is up 30% YoY. This market is high cost and has big exposure to Tech, so a Housing Crash could be on the horizon.
Phoenix, Arizona: Phoenix was one of the hottest Housing Markets in America. But now inventory is up 20% YoY and there are also quite a few rental properties hitting the market as well.
Austin, Texas: arguably America’s biggest Housing Bubble. Austin home prices have defied expectations and kept going up in the last six months. But that could be coming to an end with a 40% YoY Inventory Surge and problems arising in the tech industry.
MBA Mortgage Applications: https://www.mba.org/news-and-research/newsroom/news/2022/04/27/mortgage-applications-decrease-in-latest-mba-weekly-survey
Realtor.com Inventory / Price Cut Data: https://www.realtor.com/research/data/
Redfin New Listings Data:
JOIN as a Reventure CHANNEL MEMBER:
CONACT US: https://reventureconsulting.com/contacts/
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting’s YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
Image(s) and/or Footage used under license from Shutterstock.com. https://www.shutterstock.com/
Additional stock footage provided by Videvo. http://www.videvo.net/