The slowdown in existing home sales

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Krainer, John (2014)
  • Journal: FRBSF Economic Letter

Sales of existing homes slowed noticeably over the second half of 2013, reflecting a more drawn-out recovery than expected for housing markets. A main reason for the slowdown is higher mortgage rates that have made financing more costly nationwide. Sales appear to be slowing even more in distressed markets, where real estate investors had bought up single-family homes to convert into rental properties following the housing bust. Evidence suggests that investors may be retreating from these markets as housing valuations rise.
  • References (3)

    Krainer, John. 2001. “A Theory of Real Estate Liquidity.” Journal of Urban Economics 49, pp. 32-53.

    Molloy, Raven, and Rebecca Zarutskie. 2013. “Business Investor Activity in the Single-Family-Housing Market.” Federal Reserve Board of Governors FEDS Notes, December 5. 2014-12 2014-11 2014-10 2014-09 2014-08 2014-07 2014-06 2014-05

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