This was written back in May. In itself, that isn't a long time, however, since May, things in the real estate market has shifted...at least here in SC it has. Things in real estate and business in general shift often, so articles written 3 months ago, aren't always relevant today.
Back in May, we had, in this area, 1 house available for every 4 Realtors. Each Realtor has at least 3-4 buyer clients, making this 1 house per every 12 buyers. Supply and demand says this will increase prices alone and cause bidding wars, and it created a serious seller's market. However people selling in higher taxed, high cost areas like NYC, California and Jersey, then buying the same size house here for half the cost for cash is the main reason mortgages were down then. Then you add in large corporations who have been snatching up houses, sight unseen, buying at high prices for cash, turning around and renting them, has also caused a second problem, to go along with slighter mortgages and higher interest rates, which is they control the rent prices, driving them up as well, making it almost unaffordable to live...period. Tack on 30% hikes in food costs, 150% increase in fuel costs and shortages of necessities, and you have the perfect storm.
Now, the market is more balanced. It still leans towards being a seller's market, but mortgages are being accepted more, allowing buyers a bit more control of the market to balance things a bit. Interest rates still rose, but now, in July, mortgages are coming back into the picture greatly, and while prices are still inflated, and will most likely not drop, or not drop much, mortgages are rising again. But something to consider about interest rates and housing costs; back in the 1980's I remember double digit interest rates in houses, so it's been worse, and can/will get worse yet. I don't remember it being called a depression, but a recession. Is a depression coming? Possibly, but this housing crisis isn't the tell all of it. This area is building homes at a lightning pace, which will bring home prices back into balance, however. I can't speak of all areas in this manner.
I have info on about 6 new sub divisions coming into my email/ across my desk almost daily now.