Houses were going up at an unsustainable fast level. So there was a big imbalance between supply and demand. What I’m really saying is that we’ve had a time of a red-hot housing market all over the country, where famously houses were selling to the first buyer at 10% above the ask even before seeing the house. “When I say reset, I’m not looking at a particular specific set of data. On Thursday, CNN business reporter Nicole Goodkind asked Powell to clarify what the housing “reset” means. In the months since, economists have openly questioned what Powell meant by a housing “reset.” Does the Fed simply want buyers to back off long enough to allow inventory to rise? Or does “reset” mean the Fed also wants home prices- which spiked 43% in just over two years-to come down? Finally, turn on the water supply, test the faucet handle, and check for leaks.“I’d say if you are a homebuyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again,” Powell told reporters at the time. Clean up any water around the faucet before turning on the water supply, to make leak detection easier. Reassemble the faucet in the reverse order you disassembled it, using the parts in order from the shoe box.
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