Beyond the Buildings 2023 Economic Look Back: A Tale of Two Housing Markets
In the season finale of Core Conversations, host Maiclaire Bolton Smith and CoreLogic Chief Economist Selma Hepp dive into a discussion about the dynamic landscape of the U.S. housing market in 2023.
This year, mortgage rates surged by almost 500 basis points, home prices catapulted by 42% over three years and mortgage payments witnessed a staggering 60% hike. This episode peels back the layers of the housing market, exploring the sometimes-contrasting contexts of the real estate sector with the larger economy.
One of the major topics that this discussion covers is why some homeowners can navigate these economic shifts while others grapple with pressing affordability challenges. Although housing affordability is a crucial point for both homeowners and renters, according to Pete Carroll, executive of public policy for CoreLogic, the affordable housing crisis is a bit of a misnomer. At its core, the crisis is due to a lack of housing inventory with respect to demand.
So, how is it that the U.S. has arrived at a point where inventory is low, prices and interest rates are climbing, and rentals seem out of reach in some markets?
As 2023 comes to an end, join the conversation to reflect on what happened, where we are now, and what we can expect in the future of the U.S. housing economy.
In This Episode:
1:58 – What have the general trends been in the U.S. economy in 2023?
4:09 – Why was there a disconnect in how the housing market and the overall economy fared?
6:05 – How much of the Consumer Price Index (CPI) does housing represent? Did inflation dramatically effect this percentage?
7:47 – Discussing the housing market slowdown of 2023
10:35 – Erika Stanley reviews the number in the housing market in The Sip.
12:08 – How did the U.S. rental market do in 2023?
15:26 – What is the future for adjustable-rate mortgages (ARMs) with the current rates of inflation?
18:05 – How did the lock-in effect affect the overall housing market?
Links:
Up Next: Occupancy Fraud May Be the Next Risk for the Mortgage Industry
Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt