In the bustling world of media, it’s surprising that one crucial indicator seems to be slipping through the cracks – median new home sales prices have taken a sharp 17% nosedive since 2022. This isn’t just a statistical anomaly; it’s a historical signal that the housing market might be on the brink of a significant shakeup. So, why is this information not making headlines everywhere?
If we rewind the clock to the last time new home prices plummeted to such an extent, it lands us squarely in the midst of the 2008 housing market crash. That turbulent period saw values dwindle, leaving homeowners in a financial quagmire. Now, a similar scenario seems to be unfolding, with a home in Palm Springs, CA, serving as a stark example. Originally purchased for a hefty $1,300,000 in May of 2023, it’s currently on the market for a mere $625,000.
The term “Airbnbust” aptly captures the essence of the situation. As the housing market experiences a quiet tremor, some property owners are left grappling with the aftermath. While this may not be a widespread phenomenon yet, it’s a subtle reminder that just because a storm hasn’t hit with full force doesn’t mean it’s not brewing.
Interestingly, the overarching real estate landscape tends to follow the lead of new home sales prices. This makes the current downturn a potential harbinger of more significant challenges ahead for the housing market. As economist David Rosenberg aptly puts it, “The recession has been delayed but not derailed.” These seemingly unnoticeable shifts could be the early ripples of a larger economic wave.
Adding another layer to the narrative is Jamie Dimon, the astute investor who notably bought 1.235 million shares of JPMorgan Chase in the aftermath of the 2008 crisis, strategically timing the market bottoms. However, last week, Dimon made a surprising move – he sold 821,778 shares of JPM stock worth a substantial $150 million, signaling a potential shift in the financial landscape.
The unassuming decline in new home prices is a subtle yet crucial development that demands our attention. It serves as a cautionary tale, echoing the sentiment that economic downturns may be closer than we think. As the housing market tiptoes on the edge of uncertainty, investors and homeowners alike should stay vigilant, recognizing that history might be repeating itself in ways we hadn’t anticipated.
Sources:
When was the last time new home prices collapsed by this much?
2008 t.co/kHDB3zIg8A pic.twitter.com/Reqz5woCQ4
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) February 25, 2024
"The recession has been delayed but not derailed," economist David Rosenberg has said.
Do you agree?
— unusual_whales (@unusual_whales) February 25, 2024
Jamie Dimon bought 1.235 million shares in the open market from 2009 to 2016 at the exact times when markets bottomed.
Last week, he sold 821,778 shares of JPM stock worth $150 million for the first time ever.
Impeccable timing? pic.twitter.com/Nk99iHm5Jj
— Wall Street Silver (@WallStreetSilv) February 26, 2024
This home in Palm Springs, CA sold for $1,300,000 in May of 2023
It’s now being dumped for $625,000
It’s an Airbnbust
Just because it hasn’t happened at scale, doesn’t mean it isn’t happening
The company (ABNB) is fine. The person who bought this is not pic.twitter.com/uceIjU9CZ6
— Amy Nixon (@texasrunnerDFW) February 25, 2024