The housing market has gone from ‘sizzling’ to ‘hot’: CEO of LoanDepot
LoanDepot Inc. founder and CEO Anthony Hsieh argued on Monday that the housing market had gone from “sizzling” to “hot” as new data revealed existing home sales rose in July. The rise contrasts sharply with the months of decline due to rising house prices amid limited supply and increased demand as many people moved from cities to suburbs during the pandemic of coronavirus.
“We are on the verge of selling seven million homes in this country this year, which is the highest on record since the financial crisis, which is still very, very good,” Hsieh told “Cavuto: Coast to Coast. ” Monday.
Hsieh provided the information shortly after new data from the National Association of Realtors (NAR) revealed that sales of existing homes rose 2% on a seasonally adjusted annual rate in July compared to June, marking two months. consecutive increases.
The association noted that existing home sales hit a seasonally adjusted annual rate of 5.99 million in July. Refinitiv analysts expected a seasonally adjusted annual rate of 5.83 million units in July. If the price of previously owned homes had fallen, as analysts had anticipated, this would have been the fifth month in the past six months of declining sales as home prices soar.
The median selling price of existing homes increased at a 17.8% year-over-year pace and the inventory of unsold homes rose 7.3% to 1.32 million from June to July, according to data released on Monday. .
Lawrence Yun, chief economist of the NAR, attributed the growth in home sales to inventory “starting to rise,” which he said “will reduce the intensity of multiple offers.”
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“Much of the growth in home sales is still happening in high-end markets, while mid-to-lower tier areas aren’t seeing as much growth as there are still too few starter homes available,” Yun noted.
The median price of an existing home in the United States fell to $ 359,900 in July after hitting a record high of $ 363,300 in June, up 23.4% from the previous year and beat the previous record set the previous month, according to NAR data. The median price of existing homes in July was up 17.8% from July 2020, which marked 113 consecutive months of year-over-year increases, according to the association.
Host Neil Cavuto asked Hsieh what he thinks will be in store for the housing market in the near future.
Hsieh said the housing market “is heading in the right direction” but some buyers are still worried about entering the market due to “the slight increase in interest rates” and “the appreciation of 18 or 19% of real estate year on year. year.”
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Hsieh pointed out that both of these factors are causing some buyers to sit on the sidelines and assess whether now is the right time to take the plunge.
“We also have to realize that we are a bit at the end of the buying season,” Hsieh told Cavuto, adding that the recent spate of coronavirus cases caused by the Delta variant.
He noted that, given the increase in cases, “it would be really interesting to see whether or not this is a temporary stall or if it will heat up again, but nonetheless, the market is still very strong”.
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Charles Brady of FOX Business contributed to this report.