MetroIntelligence Economic Update by P. DUFFY
Consumer sentiment falls 8.2 percent in February and 19.7 percent year-on-year
Consumer sentiment continued its downward descent in February, reaching its worst level in a decade, falling a stunning 8.2% from last month and 19.7% from last February. The recent declines have been driven by weakening personal financial prospects, largely due to rising inflation, less confidence in the government’s economic policies, and the least favorable long term economic outlook in a decade.
69 percent of U.S. households cannot afford median-priced new home in 2022
NAHB recently released its 2022 priced out estimates, showing how higher prices and interest rates affect housing affordability. The new estimates show that 87.5 million households (roughly 69 percent of all U.S. households) are not able to afford a new median priced new home in 2022, meaning their incomes are insufficient to qualify for a mortgage under standard underwriting criteria.
January demand for second homes rose 87 percent from pre-pandemic levels
Homebuyer demand for second homes was up 87% from pre-pandemic levels in January, the highest level in a year and just shy of the record 90% gain in September 2020. Meanwhile, demand for primary residences was up 42% from pre-pandemic levels.