A top economist has warned that the U.S. housing market is currently in a"meltdown" that will continue to see a sharp drop in sales.Forbes"Pretty soon, anyone who has bought a home in recent months will be sitting on a loss," he told the business magazine.
A new report released on Monday by the National Association of Home Builders /Wells Fargo Housing Market Index found that builder confidence in the housing market saw its seventh-consecutive monthly decline in June, falling 12 points in its second-biggest single-month drop in history. Economist Ian Shepherdson said the U.S. housing market is in a"meltdown" right now. Above, construction workers work on a new home in Laurel, Maryland on June 4, 2022are causing many builders to halt construction because the cost of land, construction and financing exceeds the market value of the home," association chairman Jerry Konter said in a statement.
In the release, NAHB Chief Economist Robert Dietz said the challenge of affordability has priced out a significant portion of home purchasers from the market and warned that supply-side issues need to be addressed in order to tackle the issue of affordable housing.