This is a YouTube video titled "Latest Housing Market Numbers - 1/31 #homeloans #homebuyer #fhaloan #interestrates #housingmarket" containing a market update on February 1, 2023. The speaker discusses recent trends in home values, interest rates, buyer activity, and housing supply, explaining why a housing market crash is unlikely despite recent softening in home prices.
The latest monthly housing report's out, so it's time yet again to dive into home values. Home values are down 1.6% from their peak last year. But even while factoring in that 1.6% reduction, we're still up 8% year over year. So ultimately, we've had about five months in a row of softening home values, but the previous 121 months, home values increased. That's 10 plus years. So this housing market crash people have been calling for years just isn't coming. There's a little window where things have calmed down and that's due to interest rates having an all time increase. The fastest increase in rates in 40 years. That spooked a lot of buyers. But rates have started to go down. Buyer activity is picking back up. Rates are going to continue going down, which means buyer activity is going to continue to pick up. And we're way, way short on homes. That sounds eerily similar to the problems we had the last couple years. And that's what you're going to see this spring and summer. A lot of buyers, not enough homes, house prices go up.
