Here's why you should expect a housing rebound, according to a top economist at the National Association of Realtors
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Phil Rosen
Mar 11, 2023, 19:36 IST
Nadia Evangelou, senior economist and director of research at the National Association of Realtors.Nadia Evangelou
Gooood morning readers! I'm Phil Rosen. On tap today we've got a great interview with a top real estate economist and this week's best markets stories, including updates on the Silicon Valley Bank meltdown.
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Before we get to that — who do you think I should speak to next?
I love reading your suggestions every week — tweet me @philrosenn or email me at prosen@insider.com with your best recs for my next Q and A.
But what we do have in mind is that the US is suffering from a severe housing shortage. Back in 2008, we had an oversupply of homes by like 4 million, but now we have less than 1 million. This is the main factor that keeps home prices from falling.
NE: Our forecast is that even though activity will pick up in the next months, we still expect fewer homes to be sold in 2023 compared to 2022, up to 11% drop in home sales activity.
But in 2024 we expect a rebound — home sales activity can increase about 18%.
2. Banking rivals of Silicon Valley Bank are looking to capitalize on the tumult. As Insider senior correspondent Ben Bergman reports, other financial firms have moved to publicly encourage tech clients to move their money. But behind the scenes, some bankers have been told not to poach SVB clients: "We can't afford for them to fail."
3. Nobel-winning economist Paul Krugman is still baffled by the economy. He said he couldn't get a good read on this week's labor data, since it was difficult to tell whether the job market was cooling down or not. He doubts the Fed's next move matters much.
5. This 27-year-old real-estate investor bought three homes and flipped them for profit. John Crenshaw shared before-and-after photos of properties he fixed up in Austin, Texas. He explained how much he made on each house — including one that only cost $65,000.
6. It's time to be cautious on Big Tech stocks even though the Nasdaq has outperformed the S&P 500 this year. DataTrek Research pointed out that, historically, the Nasdaq sees declines after it outperforms the latter index over a 50 day stretch by five points or more. Get the full details.
8. Silicon Valley Bank's troubles could be the sign of a new financial crisis. At least that's what experts including "Big Short" investor Michael Burry, Bill Ackman, Ryan Cohen, and Mohamed El-Erian suggest. See what the top commentators have said over the last 48 hours.
9. Morgan Stanley recommended investing in this batch of tech stocks right now. With these names, the strategists said you could protect your portfolio from disappointing earnings and a coming market downturn. See the list of 16 stocks.
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