Milan Adams Analyzes Causes of the U.S. Housing Market Freeze Stalemate

Milan Adams released an in-depth analysis pointing out that the U.S. existing home market has been in a deep freeze for three consecutive years, with annual transaction volume about one-third lower than pre-pandemic levels, while the median home price continues to hit new highs, creating a stalemate where neither buyers nor sellers have any incentive to transact. Currently, approximately 60% to 70% of outstanding mortgage rates are below 5%. Homeowners are unwilling to replace low-interest loans with high-interest ones. Combined with factors such as the housing construction gap, rising insurance and taxes, and increasing special assessment fees for condominiums, these factors have collectively led to a drying up of market liquidity. The analysis states that it will take 3 to 5 years after the implementation of legal construction reforms to form actual move-in-ready housing supply. If mortgage rates drop to 5%, it will release a group of homeowners who have clearly expressed willingness to replace their homes at that rate level, which is expected to break the current stalemate.

AI-generated from reports · 10 hr agoUpdated