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

Abstract

Home builder confidence plunged for a tenth month straight in October as rising interest rates continued to weaken housing demand. New home sales plunged to a six-year low this summer, and plunging mortgage applications suggest the collapse will only get worse. In emailed comments, Pantheon Macro chief economist Ian Shepherdson said the reported jump in new home sales last month was much more noise than indicative of a turnaround. Wells Fargo economist Charlie Dougherty agrees, projecting median new home prices will fall nearly 7% next year. The median new house prices will be nearly 7 percent. The Census Department is set to release its monthly report. The National Association of Realtors is slated to be released this week.