Housing Market Recession: Home Builders Warn Collapse Is 'Unsustainable'—And Prices Could Tumble Another 20%

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Excluding a historic two-month plunge at the start of Covid, home builder confidence has tanked to its lowest level in a decade.

Home builder confidence plunged for a tenth month straight in October as rising interest rates continued to weaken housing demand—prompting economists to warn an unexpected rise in new home sales last month may be short-lived and prices may be on the brink of collapse, the National Association of Home Builders reported Tuesday....

In a statement, the association's chair, Jerry Konter, said skyrocketing mortgage rates have created an"unhealthy and unsustainable situation," noting this year will likely mark the first since 2011 to see a decline in the number of housing starts, or homes on which construction starts. Others are similarly bearish: In emailed comments, Pantheon Macro chief economist Ian Shepherdson said the"disastrous" figures make it clear that the

 

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Oh no

Oh no!! So you're saying affordable housing is coming. Cool.

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