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

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manhattan real estate housing

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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.