Reply to Why do expert say: Buckle in for a brutal free-fall in home prices

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]BULLARD:FIRST 250 BPS OF TIGHTENING WAS JUST GETTING TO NEUTRAL
BULLARD: GOAL IS TO HAVE 2023 AS YEAR FOR US DISINFLATION
BULLARD: SITUATION CALLS FOR MUCH HIGHER INTEREST RATES THAT WHAT WE'VE BEEN USED TO[/quote][/quote]

Bullard is the most hawkish of the Fed and does not speak for the Fed as a whole. That said, we've already seen housing prices moderate. I just don't think we'll see much a decline beyond this around here, sadly, as that would be helpful. If folks are waiting to buy until housing prices come down (as opposed to just growing more slowly), I worry that they are going to be eventually priced out.[/quote]
Well, today was 3 Feds speaking. And all three...

[quote]0950ET *MESTER SAYS SHE DOESN'T THINK FED NEAR A PAUSE IN TIGHTENING, NEED TO SEE SEVERAL MORE GOOD INFLATION READINGS

1200ET *WILLIAMS SAYS FED STILL HAS MORE WORK TO DO ON INFLATION, FURTHER TIGHTENING SHOULD HELP REDUCE INFLATION

1200ET *BULLARD: RISK THAT FED WILL HAVE TO GO HIGHER ON RATES IN 2023, MARKETS UNDERPRICING RISK FOMC MAY BE MORE AGGRESSIVE, FED HAS `A WAYS TO GO TO GET TO' RESTRICTIVE RATES, FIRST 250 BPS OF TIGHTENING WAS JUST GETTING TO NEUTRAL, TIME TO LET QT PROGRAM RUN FOR NOW; SO FAR, SO GOOD[/quote][/quote]

+1 This is what the Fed Board Governors have been saying for a while now. Plus other indicators pointing to bad economic times. I don't understand how some people can believe anything other than rates will continue to rise and home values will decline. [/quote]

The problem is that rates are going up and prices are still going up around here, just more slowly.[b] It is immensely frustrating for those trying to buy a house[/b]. Nice houses in good areas are still going at prices that seem crazy, and I've been saying the prices are crazy for ages. But the economy is still strong, houses in established and desirable areas are still in high demand, and people are willing to pay high prices because they can and probably are confident that rates will go down in the future. So I don't know what to say, but those who wait to try to time the market (I'm including myself here) are likely going to get burnt.[/quote]

Yep -- we had to move in 2021 to take care of an elderly family member.  We are currently renting and feel very stressed about our ability to ever own again.

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