The post-pandemic housing slump hasn't gone away. “Homebuyers are heading into 2024 with optimism,” the Associated Press reported. But mortgage rates remain high and are expected to remain so as “better-than-expected inflation data” clouded the possibility of the Federal Reserve lowering interest rates. It's not just mortgage costs that are the problem: the supply of homes for sale is “historically low,” while prices are at “all-time highs.” Buyers can't buy, and sellers won't sell. No one is happy.
This combination of factors means the housing market “is poised to be a major drag on the economy heading into the election,” Politico said. A recession could have a big impact, since home sales typically account for about a fifth of the economy. “Home sales activity is at a 30-year low,” one economist said. That means “all economic activity related to home sales is sluggish.” And it's not clear what it would take to turn the housing sector around. “It could take a decade,” one industry analyst said.
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