Experts Predict Lower Home Prices On The Horizon: 'Housing's Taken It On The Chin'
Portfolio Pulse from Bibhu Pattnaik
Experts predict a decline in home prices due to a significant slowdown in housing activity, influenced by the Federal Reserve's anti-inflation measures leading to high mortgage rates. Mark Zandi of Moody's and Glenn Kelman of Redfin foresee a potential drop in prices, with Zandi not expecting a market recovery until 2025 or 2026. Kelman notes an increase in housing inventory and price adjustments, suggesting a possible spur in sales. ETFs like iShares U.S. Real Estate ETF and Vanguard Real Estate ETF, and stocks such as Zillow Group, Inc (Z), Redfin Corporation (RDFN), Anywhere Real Estate Inc. (HOUS), and RE/MAX Holdings, Inc. (RMAX) offer investment opportunities in the real estate sector.
November 25, 2023 | 7:57 pm
News sentiment analysis
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NEGATIVE IMPACT
Anywhere Real Estate Inc. may face headwinds from the projected downturn in the housing market, but its established brand and network could provide resilience.
Anywhere Real Estate Inc. could be negatively impacted by the expected decline in home prices, but its established brand and network might mitigate some of the adverse effects.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
RE/MAX Holdings, Inc. could see a negative impact from the anticipated decline in home prices, although its market share and brand strength may provide some cushion.
RE/MAX Holdings, Inc. may experience negative effects from the predicted decrease in home prices, but its vast network and brand recognition could help maintain its market position.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
Zillow Group, Inc. may face challenges due to predicted declines in home prices, impacting revenue from its home-buying and selling services.
As a company closely tied to housing market trends, Zillow Group, Inc. could see a negative impact on its revenue streams from services related to home buying and selling if home prices decline as predicted.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Redfin Corporation may experience a short-term negative impact due to the anticipated decrease in home prices, but increased sales activity could offset this.
Redfin Corporation's business could be negatively affected by lower home prices, but the CEO's observation of increased inventory and pricing adjustments, leading to a potential spur in sales, presents a mixed outlook.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85