Recently, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, an economic indicator that measures the change in value of U.S. single-family homes on a monthly basis, picked up the first month to month price drops. All of them were found in the West, in the metros of Seattle, San Francisco, San Diego, Los Angeles, Denver and Portland. Normally, the index lags reality by approximately 4-6 months, but the numbers are telling.
In today's episode of The Higher Standard, Chris and Saied explore these results as well as more evidence backing up a significant decline in housing demand - as Chris has been suggesting for some time now.
Chris and Saied discuss the now unequivocal fact that people like Dave Ramsey and Lawrence Yun, the National Association of Realtors chief economist, were wrong in their assertions and predictions. They also review some of the interesting new data around new and existing home sales, and mortgage applications, all of which are going down.
They discuss an article from Fortune magazine saying that Goldman Sachs now forecasts the U.S. housing market downturn will be worse in 2023. They predict sharp drops this year in new home sales of 22%, existing home sales of 17%, and housing GDP of 8.9%.
They also discuss why many people seem to be clinging to the 'logical fallacy' of a growth recession - the idea that you can be in a recession and still have growth in the economy.
This is a show you do not want to miss! Join Chris and Saied for this fascinating conversation.
What You’ll Learn in this Show:
New data showing unequivocally that people like Dave Ramsey and other recession naysayers were wrong.
Goldman Sachs’ new forecast, suggesting the U.S. housing market downturn will be bad in 2022, and continue into 2023.
Why the idea that you can be in a recession and still have growth in the economy is a logical fallacy - one in which many people seem to believe.