BOA calls peak housing

[Vinay H.]

It's been feeling like this for a while but now the "experts" at BOA (probably from the Countrywide division) are weighing in

BANK OF AMERICA: The most important segment of the housing market has peaked

Business Insider

Akin Oyedele

,Business Insider•September 24, 2018

manhattan real estate housing

manhattan real estate housing

More

Spencer Platt/Getty

The top is in for existing-home sales, which make up 90% of transactions in the US, according to economists at Bank of America Merrill Lynch.

They cite worsening affordability, higher mortgage rates, and price cuts as reasons sales are unlikely to bounce back after peaking in November.

They no longer expect existing-home sales to contribute to the economy's growth.

The largest segment of the housing market has peaked and will no longer contribute to the US economy's growth, according to US economists at Bank of America Merrill Lynch.

"We are calling it," the team led by Michelle Meyer said in a research note on Friday. "Existing home sales have peaked."

Sales of existing US homes make up 90% of all transactions and recovered faster than the market for new homes after the housing crisis a decade ago. But sales have failed to top the level of 5.72 million homes reached in November. To Meyer, that was most likely the high-water mark.

[Steve Vaughan]

Interesting.  I worked at ML back in the day.  They're so good at 'calling it', they missed seeing they're own fire sale / demise to BOA. LOL

Question.  If housing 'sales have peaked', what does that mean? The quantity of sales?  The number of transactions, right? Not that values have peaked?  I don't have much faith in BOAs crystal ball, either, just asking for clarification.