#housing #yahoofinance #recession
National Association of Home Builders CEO Jerry Howard joins Yahoo Finance Live anchors Julie Hyman, Brad Smith and Brian Sozzi to discuss the state of the housing market, home builder sentiment, inflation, Fed interest rate hikes, a housing recession, and the outlook for the housing market going into 2023.
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BREAKING: Recession News
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The housing market is currently in the midst of a recession, according to the CEO of the National Association of Home Builders (NAHB), Jerry Howard.
Speaking on CNBC’s Squawk Box, Howard noted that the US housing sector is facing some significant headwinds, with a lack of affordable inventory and rising construction costs at the forefront.
“We’re in a housing recession right now,” he said. “There’s no doubt about it. The housing numbers are soft, but the fundamentals are strong.”
While low inventory has been an issue for some time, Howard explained that rising construction costs are making it difficult for builders to create new affordable homes.
“Builders are facing higher costs for land, labour and materials, and that’s making it harder to bring prices down,” he said.
This trend is also reflected in the latest housing data from the National Association of Realtors, which showed that existing home sales fell by 1.7% last month, marking the third consecutive month of declines.
Despite this, the fundamentals that underpin the housing market remain strong, with low unemployment and solid wage growth driving demand for homes.
“Demographics are still favourable, with millennials coming into the market and baby boomers looking to downsize,” Howard said. “We just need to see more affordable homes being built.”
In order to boost supply, Howard called on policymakers to reduce regulations and improve access to credit for builders. In addition, he believes there should be more investment in training programmes to address the skilled labour shortage in the construction industry.
“Policymakers really need to get their heads around what’s causing the problem and start taking action,” he said.
Ultimately, Howard is bullish on the long-term prospects of the housing market, predicting that this period of weakness will be short-lived.
“We’re going to see some volatility in the next year or so, but over the long-term, the housing sector is going to do well,” he said.
LOL. Housing prices are not going anywhere unless there is a huge increase in salaries. Industry has seen a decade worth of growth in just 2 years. Let’s make the prices fall 20-30% for the healthy long term growth.
What about population decline, Our younger generations have many issues on affordability and the largest baby boom generation, retiring and downsizing. we will need few homes and there will be MASSIVE inventory.
Maybe our worthless government should jump in and assist these home builders and offset the cost to build so people can afford a home and build towards generational wealth instead of wasting 100+ billion funneling our tax money to corrupt Ukraine. Enough with that BS and if you think otherwise, you’re a fool! Zelenski is extorting the world like a mob boss. Wake up! Direct that money to help Americans have a roof over there head so we don’t become a renter nation.
Wow