Housing Market Set for ‘Worst Year in Decades,’ Says Meredith Whitney – ryan

Sagging Home Sales Underline The Difficulties Faced by the Housing Market.

Existting Home Sales Fell by 0.7% in May Compared with the month Last year, accorting to the national association of realtors, following the Slowest April for 16 Years.

Meredith Whitney Thinks The Housing Market is set for “Its worst year in decades.”

The CEO of Investment Research Firm Mredith Whitney Advisory Group and Senior Advisor at Boston Consulting Group Told Yahoo Finance 2023 and 2024 Were Both Bad Years, Butthem Looking Worsse With About 4 Million Sales of Executed Homes

Whitney Thinks the actual number may be significly below that figure. “That poses a real problem for the General Economy,” she Said.

Estimates for How Much Spanding on Housing, Including Residicts Investments and the Purchase of Services, Contributs to GDP Ranged BetWeen 16 and 18% Last Year, for the National Association of Realtors and US DOCUMENTS.

Whitney Said that we can a family Moved House, they’re also buying products at retailers Such as home ware and offen paying for renovations.

AS A Result, She Said A Slow Housing Market “Ripple Effects Across the Board.”

The federal reserve was in a Tough Spot, Whitney Added. Chair Jerome Powell Said on Tuesday That Rate Cuts Wouuld Be Put on Hold Despite President Donald Trump’s Demands for Immediate Cuts.

For whitney, the market isn’t going to benefite from this.

“You have wage inflation and real inflation from goods, and then you have a Slowdown in the Economy,” She Said. “So we do don’t expecting the housing markets to improve that Much at all, if at all. We think it going to weaken Throughout the year.”

There’s ALSO A Real Generational Divide, Whitney Said, Adding That About 60% of Existting Homes Are Oweed by People Over the Age of 60, Where Potential BUYERS ARE SADDLED WITH STUDENT AND SPEND MORE OF THEIR DISCRETIONARY INCOM INCOM.

“It”s ben cheaper to rent than it has ben to owe homes Because of Escalating Property Insurance and Property Taxes,” She Said.

The National Association of Realtors Chief Economist Lawrence Yun Said Subdued Sales Were Far Due to Persistently High Mortgage Rates.

“LOWER interest rates Will Attract More Buyers and Sellers to the Housing Market. Increasing Participation in the Housing Market Will Increase the Mobility of the Workforce and Drive Economic Growth,” He Said.