Hot Housing Market Shows Signs of Cooling

Commenting on a recent drop in new-home sales, mortgage applications, and slowing home price increases, Goldman Sachs analysts are reporting that America's housing market has hit “a pothole.”

A number of housing indicators seem to point to a slowing market, reports Ruth Mantell. "While residential investment will continue to add to economic growth, its contribution to gross domestic product is likely to narrow this quarter, with rising rates creating a downside risk for the housing sector’s outlook, according to Goldman’s Kris Dawsey and Marty Young."

"Data released Tuesday morning showed home prices continued to rise in June, but at a slower pace, echoing other reports showing a softening market. Last week, the government reported that sales of new homes in July fell 13.4%, slumping to the slowest annual pace since October, on drops across the country. Between early May and the end of July, mortgage rates increased about one point. Goldman had expected that a one-point mortgage-rate shock would only curb annual sales by about 7%."

Full Story: Goldman Sachs says housing has hit ‘a pothole’

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $16.95 a month
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00