Two earlier Google search trends revealed the sentiment market participants feel in the last month, with one related to the recession and the other on selling their house. Now, a third worrying Google trend emerged; the search volume for ‘real estate market crash’ skyrocketed by 284% in the US as of September 2022, the highest in Google Trends history. This comes in the light of ever-increasing mortgage rates and a price drop in US housing for the first time in a decade.
Smaller homes
Tony Mariotti, CEO of RubyHome, a Malibu real estate firm, claims that if the current trends in housing persist, homebuyers will end up with smaller homes. He also added:
No incentives
Homeowners that have potentially used low rates in 2020 and 2021 to refinance or take out a mortgage on their homes have little incentive to sell their homes since they get to lock in the low mortgage rates while new ones keep on rising. Further rate hikes could weigh on home sales in the near term; on the other hand, existing-home sales could stabilize if the mortgages stabilize, according to Lawrance Yun, the chief economist at the National Association of Realtors. It would seem that new home buyers are now at the mercy of the Federal Reserve (Fed) and the mortgage rates. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
