Morning Report: Luxury Home Sales Fall

Posted on December 30, 2022 by Brent Nyitray

Vital Statistics:

 LastChange
S&P futures3,836-25.75
Oil (WTI)78.92 0.54
10 year government bond yield 3.89%
30 year fixed rate mortgage 6.53%

Stocks are lower this morning as we round out a year most market participants would love to forget. Bonds and MBS are down.

The bond market closes early today, and volumes should be light as everyone heads into the long weekend.

The Chicago PMI showed the economy contracting for the fourth consecutive month, although the rate of decline decelerated in December.

Luxury home sales fell 38% over the past 3 months – the biggest decline on record according to Redfin. The areas experiencing the biggest declines were Nassau County (think the Hamptons), San Diego, San Jose, Riverside, and Anaheim.

Luxury homes probably correlate pretty tightly with the fortunes of the stock market, and are often looked at as investments. With home prices beginning to decline potential buyers are pulling in their horns.

With the mortgage banks so battered over the past year, I am wondering if they might be good candidates for the January Effect.

Wishing everyone a happy and prosperous new year.

Filed under: Economy | 7 Comments »