Bluebid Buzz: October 13
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 October 13, 2022…
The Bureau of Labor Statistics released new inflation data on Thursday morning with core inflation rising to a 40-year high and housing costs (i.e. the shelter index) accounting for more than 40% of the increase.
Reuters reports the average rate for a 30-year fixed-rate mortgage rose to 6.81% last week (highest average rate since 2006), and loan application volume fell 2% from the previous week and roughly 69% year-over-year.
Rates moving higher has been difficult on home flippers faced with higher carrying costs according to Bloomberg. Flips made up 10% of transactions at the start of the year, 8.2% in the second quarter, and recent monthly data suggests shares are shrinking further still.
Even with many markets at risk of falling home prices, CoreLogic predicts national home prices will rise another 3.2% between August 2022 and August 2023.
Fortune looks at where home prices are falling the fastest and uses the aforementioned CoreLogic data to determine the likelihood of regional prices dropping moving forward.
In the face of a housing shortage, the NYT reports on the disturbing trend of perfectly good starter homes being torn down.
Finally, we launched estimates on Bluebid Homes this week. We’re excited about this new feature and hope you have a chance to check it out. As always, we value your feedback!
Have a great week.