There are several signs indicating that a U.S. housing market crash is already here, but the bulls keep finding reasons to celebrate and live in denial that all’s well in this space. The National Association of Realtors (NAR), for instance, has just released a report that says home prices rose in 93 percent of the metro areas in the U.S. in the third quarter of 2019.
But NAR’s report was laced with caution as the body probably fears that the U.S. housing market is already in a state of decline.
NAR’s cautious view on the state of the U.S. housing market raises a red flag
The NAR pointed out that the median price of single-family homes increased in 166 of the 178 markets the association measures, up from 91 percent of the markets that showed growth in the second quarter. The median price of a single-family home in the U.S. came in at $280,200 during the quarter. That’s a 5.1 percent jump over the prior-year period’s median price of $266,500.
But this is where the good news for the U.S. housing market ends. The Commerce Department had reported last month that the median price of a new home was down 8.8 percent in September to $299,400 as compared to the prior-year period. The month-over-month decline was also severe at 7.9 percent.
Sales of both new homes and existing homes were also down in September, indicating that a U.S. housing market crash has already arrived. So, the third-quarter report from NAR does not reflect the true health of the U.S. housing market as things have already started going south. And the ironic thing to note is that NAR gave slight hints of a slowdown in its report.