2/8
The amount of income you need to qualify for a mortgage has more than doubled. Logically, most of these people are left with one choice: stay in their current apartment or house, whether they like it or not. pic.twitter.com/UWrz0IxvWJ
— Jeff Weniger (@JeffWeniger) September 12, 2023
4/8
When people purchase these existing homes, maybe the dishwasher is 15 years old. After they move in, they buy a new one.
In NAHB data from 2020, people spend $13,179 in the first year on appliances, window repair, drywall, and so on.
People who don't move don't spend. pic.twitter.com/QU2YrnX4TN
— Jeff Weniger (@JeffWeniger) September 12, 2023
6/8
The precipitous decline in Existing Home Sales is an activity issue. Buyers not finding sellers. People just not doing anything but staying put. The stocks of Household Durables companies — which rely on people moving in and splashing money — look set for trouble. pic.twitter.com/HhZpUgjJDD
— Jeff Weniger (@JeffWeniger) September 12, 2023
8/8
Finally, people don't make big purchases when credit cards are maxed out and credit card interest rates are at all-time highs. Also, auto loan rates are at 16-year highs. Student loans are due.Will people remodel the proverbial bathroom? I suspect the answer is no.
END pic.twitter.com/eNyseteAxH
— Jeff Weniger (@JeffWeniger) September 12, 2023
h/t Simian_Stacker