Bluebid Buzz: June 15
As a benefit to the homeowners and homebuyers using our platform, I share a regular summary of housing market news and data driving our decision-making here at Bluebid Homes. We call it the Bluebid Buzz.
Disclaimer: Views expressed here are my own and not the views of my coworkers or anyone else. I am not a financial advisor, investment advisor, or housing expert. I’m just a guy who cares deeply about saving the American Dream of homeownership.
Here's the buzz for the week of June 15, 2023…
Experts can't seem to agree on where housing prices are headed, supply remains stubbornly tight, and many aren't buying the Fed's tough talk on interest rate cuts.
Newsweek says Fed Chair Jerome Powell doesn't expect rate cuts for at least another two years. That could further exacerbate the current market and prevent people from selling homes due to their already low, stabilized interest rates - while also encouraging some to jump into the buyer's market to potentially avoid higher rates down the line.
Housing is perhaps the most consequential category in the consumer price index, and housing inflation has been stubbornly high for months. According to CNBC, many economists believe shelter costs have peaked, and housing inflation is on the precipice of a reversal.
Experts can't reach a consensus on the direction of home prices in America. Business Insider shares an interview where Zillow's chief economist predicts housing prices will climb another 5% year-on-year by the end of 2023, due to dwindling inventory levels, while Yahoo Finance features a report saying home prices in the second half of the year will revert back into correction mode.
Offering an assessment of the current housing supply is far easier - new listings dropped 23% annually during the four weeks ending June 11, according to Redfin. Meanwhile, the growth of Bluebid Homes inventory continues to outpace the traditional market. The platform affords owners an opportunity to privately explore selling - without the hassle and risk of published days on market.
Have a great week.