Real estate market: Michael Midler, president, and CEO of Century 22 said Monday that the real estate market is “not yet ready to go down” and will continue to move in a “faster direction” amid sluggish demand. Miller told “Mornings with Maria” that the market is still hot because “a lot of buyers are trying to exit and beat further mortgage rate hikes.”
According to The National, he revealed shortly before commenting on “Morning with Maria” that current home sales rose 0.8% in October over the previous month, to a seasonally adjusted annual rate of 6.34 million, which Represents two consecutive months of growth. Realtors Association.
The real estate market will continue to grow
The association also noted that the current median home selling price rose 13.1% to $353,900 compared to the same period last year and that unsold home inventories fell 12% to 1.25 million, which equates to about two and a half months of monthly sales. Sales speed.
NAR’s chief economist, Lawrence Yun, said in a press release that Monday’s data proves that “home sales remain resilient despite lower inventory and increased affordability challenges.”
Midler agreed with that sentiment, telling host Maria Bartiromo on Monday that he “continues to see the market moving in a very fast direction because there is a lot of demand for people trying to buy homes in this country.”
Lawrence also noted in Monday’s press release that “inflationary pressures, such as rapidly rising rents and rising consumer prices, may prompt some potential buyers to seek consistent and persistent mortgage payment protection.”
Earlier this month, it was revealed that US consumer prices have risen at the fastest annual pace in more than 30 years as supply chain bottlenecks and material shortages remain.
Real estate market examples
The Labor Department said its consumer price index rose 6.2% year-on-year in October. This is the biggest annual gain since November 1990. Prices are up 0.9% month over month.
Shelter costs rose 0.5% last month and are 3.5% higher than last year’s levels.
Midler on Monday also noted that “on the front of the building, we’re far behind.”
From the downturn in 2008 to where we are now, we are at historic lows in terms of building people.”
“Here is the truth of the matter; between 2012 and 2021, there were approximately 12 million new household formations, and we only had 7 million homes built in this country, so we have to double the pace in the next five years to catch up. We ask To be there “.
However, this could prove difficult if supply chain disruptions persist. Earlier this month, the chief executive of the National Association of Home Builders, Jerry Howard, noted that these bottlenecks are creating unprecedented problems, telling Varney & Co. that they are causing “unusual conditions” as they relate to new homes.
Howard acknowledged that the issues do not affect sentiment, but he stressed that “the supply chain is still a headwind.”
Host Stuart Varney also told the host that “demand is too strong and supply is too short” for new homes and argued that if the supply chain can be “fixed” there are “real good years” waiting for the market.
Howard provided insight into the industry on the same day he learned that homebuilder confidence rose in November as lower inventory and strong buyer demand helped boost confidence despite ongoing supply chain disruptions.
The National Association of Home Builders/Wells Fargo housing market index rose three points to 83 this month. Analysts polled by Refinitiv had expected homemaking sentiment at 80.
The indicator can range from 0 to 100, with any print over 50 indicating positive sentiments. Any figure above 80 indicates strong demand.
Midler told Bartiromo that “all areas of the market” are currently seeing an increase in new construction, but noted that there is a “hot market in the South” as there are “more buildings” in cities including Raleigh and Wilmington, North Carolina. . As well as parts of Jacksonville, Florida, and Texas.