Deals are falling through in the housing world. Roughly 56,000 home purchase agreements were called off last month, which translates to almost 15% of homes under contract at the time, “the highest percentage of any June on record,” according to Redfin ( RDFN ).
Sellers even cut their prices, but it didn’t seem to be enough. About one in five homes for sale last month had a price reduction, the highest amount of any June on record.
Add it all up, and the housing bubble looks ready to burst: -
Let’s start with the fact that the average American can’t afford the average house. Not even close:
Houses have been unaffordable for a while, but for a while, “investors” — i.e., private equity companies with access to cheap credit — took up the slack, sometimes buying entire neighborhoods and converting the houses to rentals. Now they’ve begun to retr…
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