The U.S. housing market is in trouble again, and as crazy as it sounds, it won’t surprise me to see home prices decline soon.
Here are three reasons why:
Existing-home sales have been declining since July of last year. The annual rate of existing-home sales in July of 2013 was 5.38 million. In April of this year, this rate fell to 4.65 million. (Source: Federal Reserve Bank of St. Louis web site, last accessed May 22, 2014.)
Mortgage originations in the U.S. housing market have been falling consistently, as illustrated by this chart:
Mortgage Originations, U.S. Housing Market