Taps Coogan – December 29th, 2022

Enjoy The Sounding Line? Click here to subscribe for free.

The following chart, from BofA via Isabelnet, highlights the implosion in existing home sales.

Many people are blaming the low transaction volume on a lack of inventory. That’s partially true but only in the narrowest sense. There is a lack of inventory because sellers don’t like the offers they’re seeing and can still remember the insanely strong market they had just a year ago. Give it time and they’ll realize that we’re not going back to those bizarre bubble days.

Remember, the Fed is still shedding MBS and raising interest rates and the recession hasn’t even technically started. Time is on the buyers’ side, not the sellers.

Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.