I don’t know if it will get called a recession or not, we no longer have a technical definition that is valid since the last two consecutive quarters of negative growth happened and people felt it didn’t suit their political agenda, so they just ignored it and said it wasn’t so; but call it what you want, it is what it is. What I can tell you is that the signs are not looking good. The job market is slowing down, and people are not finding new jobs as quickly as they once did. Wage pressure is decreasing, and many people are fighting going back to the office so they will risk termination over heading back to a building.
Other signs point to some real issues. Vehicle repossessions are rising rapidly, and some banks and credit unions are paying high premiums to repossession agents to move to the front of the line so they can get the cars back quickly and get them sold off before the used car market plummets! The key here is that since all the free money has dried up, and the child tax credit has gone away, people can no longer fit their car payments in their budgets when coupled with the higher prices’ inflation brought us. Add to this situation the soon to be reinstatement of student loan repayment obligations and you will see further struggles of those who have borrowed money that they can’t or won’t pay back. If they do manage to pay for their cars and their loans, those people will have greatly reduced disposable income and the pain of that loss will be felt across the board. This will put pressure on GDP and call it what you may, it will certainly FEEL like a recession.
The good news will be that the slowing economy will eventually force the FED to stop raising rates and put some much-needed downward pressure on interest rates. Despite what some might think, I believe we are either at the top or close to the top of the rate cycle and will see a slow but steady decline in mortgage rates into the fall and possibly beyond. Now don’t get all excited, we aren’t going back to 3%, but I think we can settle into the 5’s pretty comfortably for at least a little while. But hey, what do I know?
Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.
![Share of Million-Dollar Homes Rising, Here's Where They’re Most Prevalent [New LendingTree Study]](/media/k2/items/cache/a5a36d851b31244a436b6819ec20f26f_XS.jpg)
Though home prices have remained steep after rapid growth during the height of the pandemic, paying $1 million or more for a house may seem excessive to most Americans. That said, just because most people aren’t spending seven figures on a house doesn’t mean million-dollar homes aren’t prevalent in some parts of the U.S.
To see where million-dollar houses are most common, LendingTree analyzed housing data to find the share of million-dollar homes in each of the nation’s 50 largest metropolitan areas. Here's what we found.
- Million-dollar homes are relatively uncommon in most of the country. An average of 6.68% of owner-occupied homes in the nation’s 50 largest metros in 2021 were valued at $1 million or more. However, the share of million-dollar homes is growing. According to our research last year, an average of just 4.71% of owner-occupied homes in the nation’s 50 largest metros in 2020 were valued at $1 million or more.
- San Jose and San Francisco, Calif., have the largest share of million-dollar homes. Respectively, 66.28% and 52.91% of owner-occupied homes in these metros are worth $1 million or more — making them the only two in our study where a majority of homes are worth at least $1 million.
- Including San Jose and San Francisco, the four metros with the highest percentage of million-dollar homes are in California.
- Only four metros — Buffalo, N.Y., Cleveland, Pittsburgh and Louisville, Ky. — have fewer than 1.00% of owner-occupied homes valued at at least $1 million.
You can check out our full report here: https://www.lendingtree.com/home/cities-with-the-largest-share-of-million-dollar-homes/
LendingTree's Senior Economist and report author, Jacob Channel, had this to say:
"Remember that million-dollar homes aren’t always synonymous with “luxury homes.” On the contrary, a home worth a million dollars may be seen as firmly middle-class and anything but extravagant in many places, like San Jose and San Francisco. Unless a concerted effort is made to build more affordable housing, especially in the nation’s big cities, million-dollar-plus homes are going to become more and more common, even if they don’t become more affordable.”
Agent Resource
|
||||||
What's New
![Existing-Home Sales Retreated 1.9% in April [NAR]](/media/k2/items/cache/261c8195bdb81e9a47c8021937e6e53a_M.jpg)
![Existing-Home Sales Retreated 1.9% in April [NAR]](/media/k2/items/cache/261c8195bdb81e9a47c8021937e6e53a_S.jpg?randomimage=19238498967)
From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.