Economist Podcasts Moves over: American house prices
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Sep 8, 2023 
Simon Rabinovich, U.S. economics editor for The Economist, shares insights on the surprising resilience of the American housing market amid rising interest rates. He explores how unique aspects of the mortgage market defy expectations of falling prices, complicating homeownership for many. Additionally, Anne Rowe honors Isabel Crook, a Canadian anthropologist who embraced China's communist changes, reflecting on her unique journey and the cultural shifts she witnessed. The conversation also touches on the complexities of elective egg freezing and its real-life success rates for women.
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Resilient Housing Market
- American house prices are rising despite high interest rates, defying typical market behavior.
- This is mainly due to a freeze in the housing market, as homeowners with low mortgage rates are reluctant to sell.
Housing Market Freeze
- Existing home sales have dropped significantly due to low inventory caused by homeowners holding onto low mortgage rates.
- Demand is down, but supply has decreased proportionally, keeping prices high.
Offsetting Economic Effects
- The housing market freeze has been offset by increased spending on home remodeling and new home construction.
- Homeowners are upgrading existing homes, and builders are capitalizing on reduced competition.