The Housing Market Enters Into Recession
In June, homebuilders broke ground on 982,000 single-family homes. That’s down 19% since February, and down 16% from February of 2021.
According to Fortune, “Peak euphoria is behind us. We are giving back some of the euphoria [home] pricing that was rolling over every housing market,” says Rick Palacios Jr., head of research at John Burns Real Estate Consulting.
Existing home inventory will continue to rise, and homebuilding will continue to slow. At least that’s the view at John Burns Real Estate Consulting, which does consulting work for both builders and investors. As it does, the ongoing housing recession (i.e. a contracting housing market) could push home prices lower in bubbly regional housing markets. Indeed, many bubbly markets, Palacios says, are barreling toward price cuts in both 2023 and 2024. That includes markets like Phoenix, Nashville, West Palm Beach, Las Vegas, and Austin. In Boise, Palacios says, home prices could go negative on a year-over-year basis as soon as December.
