Fortune, March 22, 2022, Housing boom loses steam? Home sales may drop 25% by the end of summer, says analyst
While housing prices aren’t showing any signs of leveling off in the near future, one analyst says he expects total sales to drop precipitously in the coming months.
Ian Shepherdson, chief economist and founder of research consulting firm Pantheon Macroeconomics, predicts existing-home sales will tumble 25% between February and the end of summer. In real numbers, that brings the annual pace from 6.02 million to 4.5 million.
The prediction is based upon data from the Mortgage Bankers Association that shows an 8% decline in loan applications. That comes as the average monthly mortgage payment has increased by over $400 per month, Shepherdson calculates. And it could be a canary for the housing industry.
