Judging by the behavior of thousands of internet users, uncertainty and nervousness reign among those hoping to sell their homes this year, as prices continue to rise.
Internet searches in the United States with the phrase “Sell my house fastIt rose 2,750% Thursday, July 28, just hours after the release of the latest US gross domestic product report, according to Google Trends data compiled by real estate firm RubyHome.
RubyHome, a Los Angeles-based luxury real estate agency, analyzed data from a Google tool during the week of July 25-29 to see how consumers would react to real-time news about Possible economic recession.
The volume of research increased after the Ministry of Commerce issued a report revealing the economy Negative growth for the second consecutive quarter, falling to an annualized rate of 0.9%.
“The uptick in search terms above shows that consumers are worried right now,” Tony Mariotti, founder and CEO of RubyHome, told The New York Post.
For Mariotti, it’s about “double blowA combination of rising interest rates and deflationary GDP. The outlook is not looking good and is fueling buyers’ uncertainty about home prices much more.
Real estate brokers are seeing the effects of this changing sentiment. At RubyHome, we’ve seen a slowdown in second and luxury home purchases, as the wealthy take a “wait and see” approach.
Home prices are still higher than they were a year ago, but gains slowed to the fastest pace ever in June, according to Black Knight, a mortgage software, data and analytics company that began tracking that metric earlier this week.
Black Knight data cited by CNBC indicates that the annual rate of price increases fell two percentage points, from 19.3% to 17.3%. Emmy-winning real estate reporter Diana Olek reports that “even when home prices fell sharply during the 2007-2009 recession, the sharpest slowdown in one month was 1.19 percentage points.”
The increase in prices remains strong due to the imbalance between supply and demand. The housing market has been in severe shortages for years, and strong demand during the coronavirus pandemic has exacerbated it.
So far, Prices are not expected to decrease at the national level. There may be a stronger housing market in general, but higher mortgage rates will weigh on buyers.
The The average 30-year fixed-rate mortgage rate reached 6% in JuneAccording to the daily mortgage news. It has since slipped back to the lower 5% range, but is still well above the 3% range it was in earlier this year.
“What does stagnation mean to me?”
Meanwhile, the volume of searches for “what does stagnation mean to me” rose simultaneously 1900%.
“The bright side today is that we’re not seeing 30 bidders in mid-market homes, and there’s more stock in the market than during the pandemic,” Mariotti explained.
Whereas two consecutive quarters of negative growth are often considered stagnation, It is not an official definition. NPR reported last week that a nonprofit, nonpartisan organization called the National Bureau of Economic Research (NBER) determines when the economy is in a recession.
The NBER panel of eight economists makes this determination, and many factors factor into this calculation. The White House refused to describe the current economy as a recession before the midterm elections.
Real estate brokerage Redfin agrees that decades of high inflation and even high interest rates have made many potential home buyers in the rental market.
Buyers who flocked to some of the “popular migration destinations” at the height of the pandemic are likely to see lower prices in those markets that are now overheated.
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