With today’s news that unemployment claims hit their highest level in 2 years, and the slew of data showing that the economy is cooling, we saw mortgage rates fall for the first time in a month. That breaks a brutal span for mortgage rates. Now the Fed will have more pressure to reduce rates as Treasury rates ease. IF inflation continues to cool.
We are seeing the trend of balance of power transfer from Sellers to Buyers continue. We are seeing appreciation continue to slow across the nation. The Sunbelt states in particular are seeing price drops. Fla, Texas and Az in particular.
We need two things to happen to get a nice price crash party going:
1) More job losses
2) More houses on the market for sale (Listings) and especially distressed sales ( foreclosures) where #1 above comes into play.
I’m not ready to predict a price crash but it does look like price appreciation is going to remain flat for a while ( Next 2 years?).
Active housing inventory for sale by May, according to the http://Realtor.com series
May 2017 -> 1,253,854
May 2018 -> 1,156,910
May 2019 -> 1,180,920
May 2020 -> 928,370
May 2021 -> 447,662
May 2022 -> 479,462
May 2023 -> 582,441
May 2024 -> 787,722
May 2025 -> 1,036,101
I know you’re excited that the economy MIGHT dip, but inflation is 2.1%. Unemployment isn’t American citizens who are out of work.
But with the increase in inventory and it leaning towards a buyers market, it would be the perfect time for Powell to stop playing politics and lower rates, the economy is strong enough to handle it, and would help the pending housing burp. But we all know why that won’t happen…
Quick story…folks from Texas and the South know of the chain Buc-ees. Gas stations with 100+ pumps, a WalMart sized convenience store with more food, snacks, clothing, etc. you can imagine, and the cleanest restrooms on the planet, with individual office stalls to do your business.
Breakfast burritos and Brisket sandwiches are to die for.
Tons of logo’d merch of their mascot, a cute beaver. ( not THAT kind of beaver)
They also have the longest car wash. They charge $16 for this car wash, seems a bit high, but it works quite well. But the kicker is, if you buy that car wash at $16, you also get $1.00/gal discount on gas!
So I always get it washed when I fill up, and you’d be surprised that despite 100+ pumps, it’s tough to find a pump.
Anyways, long story, short….
I got gas and a wash on Tuesday.
Gas was $1.99, I paid .99¢ with my car wash discount. Nice, eh? Been a minute since gas was that price like 4+ years.
https://bluebonnet.coop/worlds-biggest-buc-ees-lands-luling