Per Bloomberg
US Housing Market Prices Drop Third Month in a Row | Zillow Economist Says Homeowner Equity Reached a Record High
12/6/2022
The US housing market has gone wild as more and more people find purchasing a home out of their capabilities. Millennials and Gen Zers, especially, shared how they want to buy a home but simply can't afford it, nearing the housing market's peak before it started to cool.
In a June 12, 2022 article, CNBC shares how 65% of millennials (26-41) and 59% of Gen Zers (18-25) equated success to owning a home. Among the surveyed 1,132 non-homeowners, it was reported that two-thirds blame affordability as why they haven't purchased a home.
After a 13% increase in Aug year-over-year, the increase dropped to 10.6% in Sept, starting a slow, downward trajectory of housing prices. In Sept, prices declined by 1.2% from a month earlier.
The S&P Dow Jones Indices managing director Craig Lazzara shares how the situation is still difficult for homebuyers despite the drop. Although the housing market prices pulled down, mortgages are a different story.
Lazzara: “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable,”
Due to mortgage rates increasing by over 2x, potential buyers are now sidelined, resulting in the demand slowing down. This, in turn, creates a domino effect since the demand slows down, and sellers are now listing fewer properties.
Per the S&P CoreLogic Case-Shiller index, the decrease happened for the third month in a row for 20 large US cities in terms of seasonally adjusted price measures.
To be clear, the cooling is not caused by a surplus of supply but rather the higher borrowing costs. Lazzara expects home prices to weaken due to the potentially continuing macroeconomic challenges.
ATTOM Data's VP of market intelligence Rick Sharga gives an estimated drop rate for the national housing market. However, this is not black and white, as he expects certain prices to continue to increase, per Forbes.
Zillow's economist Nicole Bachaud shares how homeowner equity reached record-high levels over the past decades as owners see the value of their properties.
Resources:
See flow at unusualwhales.com/flow.
Trump has told Walmart, $WMT, to 'eat the tariffs' instead of raising prices
5/17/2025 11:59 PMMoody’s downgrades US credit rating to Aa1 from Aaa
5/17/2025 4:55 AMYouTube, GOOGL, viewers will start seeing ads after ‘peak’ moments in videos
5/16/2025 7:55 PMCEOs say that just a fraction of AI initiatives are actually delivering the return on investment they expected
5/16/2025 7:51 PM
Stay Updated
Subscribe to our newsletter for the latest financial insights and news.
+With Unusual Whales
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.