US Home Sales Sink to 4.06 Million, Rosenberg Warns Prices Are Cracking

1 articles · Updated · Business Insider · Aug 12

Existing home sales fell nearly 2% in July to a 4.06 million annual rate, below the 4.89 million pace seen in January 2008, prompting David Rosenberg to warn US home prices are starting to crack.
Mortgage rates have sidelined buyers while the lock-in effect from low pandemic-era loans has kept many owners from listing, leaving the market stuck with weak transaction activity.
Unsold inventory has climbed to about 4.6 months, and Rosenberg said the last time demand and supply were this strained, median home prices fell roughly 2%.
Median existing-home prices still rose 2% from a year earlier in July, but Rosenberg said some local markets are already seeing declines as inventory builds and demand softens.
Rosenberg argued broader price weakness could hit consumer spending through the housing wealth effect, adding another drag on an economy he says has so far avoided recession largely because of the AI boom.