Existing home sales

existing home sales

Nov 28, 2022

One can see that while the median price has been rising, new existing home sales have been in a general decline for several months. In simple terms, it comes down to affordability; there is a limit to how much disposable income the average American has to allocate towards their monthly payments.

price and demand of new and existing homes

In some instances, monthly payments have increased 50% for a similar-priced house purchased

roughly 8 to 12 months ago. Housing is another leading economic indicator. For most Americans, homes represent their most significant investment, and housing wealth accounts for approximately half of their total household net worth. When housing prices fall, Americans spend less because they feel poorer. As housing prices fall, Tax revenues drop, homebuilders cut back on building projects, construction workers get fired, and unemployment levels rise.

A new survey from consultancy PwC released this month showed 50% of companies are planning

to reduce overall headcount. Additionally, 46% of companies said they are dropping or reducing

signing bonuses, while 44% are rescinding offers

Not too long ago, wage inflation was a big issue, and at that time, in the Market Update service and in our private forums, we stated that soon the opposite would occur. It is now coming to pass. Shortly a plethora of articles will emerge saying how the average American will probably have to work until he dies as opposed to retiring at a certain age.

When things appear dire, that is when contrarian investors should raise their heads and start looking for deals. Experts are notorious for making the loudest noise at or close to market bottoms. While we expect existing home sales to decline and price to fall, the market will bottom once the Fed deflects. The Fed will take a knee as both the stock market and the economy are hooked on easy money. Risk takers can start looking for bargains as it is now a buyers’ market. Don’t be in a rush to buy; the idea is to look for the best possible deal.

Other Articles of Interest

Investing in a Bear Market: Are Bear Market Fears Overblown

Investing in a Bear Market: Ignore the Naysayers

Investing In A Bear Market: Strategies for Successful Investing Updated Sept 29, 2023 We will employ a historical backdrop to ...
"Buy the Dip: Embark on the Stock Market Rollercoaster Adventure

Buy the Dip: Dive into Wealth with this Thrilling Strategy

Buy the Dip: A Potentially Exciting Strategy  Sept 29, 2023 Introduction: In the captivating world of finance, the phrase "Buy ...
Resource Wars Redefined: Beyond Traditional Conflicts

Resource Wars: Navigating a Shifting Global Landscape

Resource Wars Unveiled: The Global Transformation September 14, 2023 Introduction:  The "Resource Wars" concept has taken on a new and ...
Navigating Market Trends: Insights for Prudent Investors

The Prudent Investor: Prioritizing Trends Over Speculation

Prudent Investor: A Confluence of Factors Advising Caution in the Markets Sept 10, 2023 There are numerous ways one can ...
Best Stocks To Invest Long Term strategies that never fail

Optimal Strategies for The Best Stocks To Invest Long Term

Unlock Wealth: The Best Stocks To Invest Long Term Sept 9, 2023 Intro: Contrarian investing and understanding mass psychology are ...
Psychological & Chemical Ware Fare Are Gaining Traction

Seizing Dominance: The Relentless Rise of Mental Warfare

Mastering the Art of Mental Warfare: Strategies for Mental Manipulation Updated Aug 2023 The true essence of power often remains ...
Stock Market Predictions Today: Americans Fear The Market

Stock Market Predictions Today: Americans Fear The Market

Stock Market Predictions Today Updated Aug 2023 We are going to discuss this topic against a historical backdrop for two ...
Delving Deeper: Exploring the Question – What Is Inflation?

What is Inflation? Unveiling Effects and Strategies for Mastery

 Decoding Inflation: Unraveling the Complex Effects Aug 25, 2023 Inflation, which refers to the general increase in prices and fall ...
Conquering the Stock Market Cycle of Manipulation with Mass Psychology

The Cycle of Manipulation in Investments

The Game of Deception: Navigating the Cycle of Manipulation in Investments Aug 18, 2023 The stock market manipulation cycle has ...
Investor Sentiment Data Manipulation

Investor Sentiment Data Manipulation: Unveiling Intriguing Insights

Unveiling the Impact: Exploring Investor Sentiment Data Manipulation Aug 12, 2023 The significant manipulation of sentiment data has serious long-term ...
"Stock Buybacks Unmasked: Unraveling the Adverse Consequences

Stock Buybacks: Exploring Their Detrimental Effects

Unveiling the Downsides: Dissecting the Negative Impacts of Stock Buybacks Updated Aug 8 2023 We will delve into history to ...
Is US Dollar soaring?

US Dollar Rally: Is it Ready to Rumble?

US Dollar Rally: Riding the Wave of Resurgence Updated Aug 02, 2023 The weekly chart (below) shows a positive divergence ...
Top 10 investment resources for Novice Investors

Stock Books For Beginners: Investing Beyond the Pages

Stock books for beginners July 30, 2023 Dear Sir or Madam, allow me to offer a word of caution regarding ...
Psychological Manipulation Techniques; The art of brainwashing

Psychological Manipulation Techniques: Directed Perception

Deceptive Tactics: Psychological Manipulation Techniques Updated June 18, 2023  Everything you process is based on Perception & perception is based ...
False Information trends

False Information and Its Consequences

How False Information is Fueling the Insane Bull Market Updated July 30, 2023 Indeed, the proliferation of false or misleading ...