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close video Housing market preparing for ‘another headwind’ that will ‘drag’ the economy: Mark Avallone

Potomac Wealth Advisors president and founder Mark Avallone says the ‘trickle down’ effect will take hold later this year.

The U.S. housing market suffered the biggest drop in value since 2008 as home prices came crashing down.

That's according to a new report from real estate brokerage firm Redfin, which showed that the total value of U.S. homes tumbled from a record high of $47.7 trillion in June 2022 to $45.3 trillion at the end of the year — a decline of $2.3 trillion, or 4.9%. 

It marks the biggest drop in percentage terms since the 2008 financial crisis, when home values plunged by 5.8% from June to December.

During the COVID-19 pandemic, home prices soared at a pace not seen since the 1970s with mortgage rates near a record low. Homebuyers — flush with stimulus cash and eager for more space during the pandemic — flocked to the suburbs.

Demand was so strong, and inventory so low, that at the height of the market some buyers waived home inspections and appraisals or paid hundreds of thousands over asking price.

WHEN WILL US HOME PRICES FINALLY STOP DROPPING?

Homebuyers flush with stimulus cash and eager for more space during the pandemic flocked to the suburbs. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

The frenzy came to a halt when the Federal Reserve embarked on the most aggressive interest-rate hike campaign since the 1980s as it tried to slow the economy and crush runaway inflation. 

The interest rate-sensitive housing market has so far borne the brunt of tighter monetary policy: Although mortgage rates have fallen from a peak of 7.08% notched in November, they have recently reversed that trend and started to march higher amid interest rate-hike fears. The average rate for a 30-year fixed mortgage climbed to 6.5% this week, according to data from mortgage lender Freddie Mac. 

That remains significantly higher than just one year ago, when rates hovered around 3.92%.

The median price of a home sold in January was $383,249, down 11.5% from a peak of $433,133 in May 2022, according to Redfin. (Jim Watson/AFP via Getty Images) / Getty Images)

Homebuyer demand dried up as consumers confronted the steepest mortgage rates in years, further weighing on home prices. The median price of a home sold in January was $383,249, down 11.5% from a peak of $433,133 in May, according to Redfin. 

"The housing market has shed some of its value, but most homeowners will still reap big rewards from the pandemic housing boom," said Chen Zhao, Redfin economics research lead. She noted the total value of U.S. homes remains roughly $13 trillion higher than in February 2020, before the COVID-19 pandemic shut down broad swaths of the global economy. 

Still, even with higher mortgage rates putting home ownership out of reach for millions of Americans, many home prices are still more expensive than they were one year ago. In December, the total value of U.S. houses was still up 6.5% from the same time one year ago. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE close video US economy in a unique period for housing sector: Michael Kantrowitz

Piper Sandler chief investment strategist Michael Kantrowitz shares his 2023 market outlook ahead of the January inflation data after futures data signals a continued rally.

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Sports

Source: 5-star Keys flips from LSU to Tennessee

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Source: 5-star Keys flips from LSU to Tennessee

Five-star pass catcher Tristen Keys, ESPN’s No. 2 wide receiver in the 2026 class, flipped his commitment from LSU to Tennessee on Thursday afternoon, a source told ESPN.

Keys, who is 6-foot-3 and 190 pounds, is the No. 10 prospect in the 2026 ESPN 300. He is the second-ranked member of the Vols’ 2026 class, trailing only five-star quarterback Faizon Brandon, ESPN’s No. 8 recruit this cycle.

Keys, who is from Hattiesburg, Mississippi, had verbally committed to the Tigers since March 19. However, he maintained an open recruitment throughout the summer, speaking with multiple programs during official visits to Auburn, Miami, Tennessee and Texas A&M. With Keys’ flip, LSU has lost a five-star wide receiver pledge in consecutive cycles, after Dakorien Moore‘s decommitment in 2025.

Keys headlines a stacked pass-catching class that the Vols are building around Brandon, ESPN’s No. 3 pocket passer prospect. Keys joins Salesi Moa (No. 35 overall), Tyreek King (No. 52) and Joel Wyatt (No. 66) as the program’s fourth top-100 wide receiver pledge in 2026. Tennessee ranked 15th in ESPN’s class rankings for the cycle prior to Keys’ flip.

Keys caught 58 passes for 1,275 yards and 14 touchdowns in his junior season last fall, guiding Hattiesburg (Miss.) High School to Mississippi’s 6A state title game. He later participated in the Under Armour All-America Game and the Polynesian Bowl earlier this year.

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Technology

Affirm’s stock soars 15% on earnings, revenue beat

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Affirm's stock soars 15% on earnings, revenue beat

Max Levchin, co-founder of PayPal and chief executive officer of financial technology company Affirm, arrives at the Sun Valley Resort for the annual Allen & Company Sun Valley Conference, in Sun Valley, Idaho.

Drew Angerer | Getty Images

Affirm shares rose 15% in extended trading on Thursday after the provider of buy now, pay later loans reported better-than-expected earnings and revenue for the fiscal fourth quarter.

Here’s how the company did versus LSEG consensus estimates:

  • EPS: 20 cents vs. 11 cents estimated
  • Revenue: $876 million vs. $837 million estimated

Revenue climbed 33% in the period from $659 million in the same quarter a year earlier. Gross merchandise volume rose 43% to $10.4 billion from $7.2 billion a year ago.

Affirm reported net income of $69.2 million, or 20 cents a share, after recording a loss a year earlier of $45.1 million, or 14 cents a share.

 “This consistent execution led Affirm to achieve operating income profitability in FQ4’25 – right on the schedule we committed to a year ago,” the company said in its shareholder letter.

For the first quarter, Affirm said revenue will be between $855 million and $885 million, while gross merchandise volume will be $10.1 billion to 10.4 billion.

Shares of Affirm were up 31% this year before the after-hours pop, topping the Nasdaq’s 12% gain.

Affirm, which went public in 2021, faces growing competition in e-commerce. It has partnerships with Amazon and Shopify, but Walmart recently shifted to competitor Klarna, which is expected to go public in the near future. Last year, Affirm announced a deal with Apple.

WATCH: Affirm posts earnings and revenue beat

Affirm posts earnings and revenue beat for Q4

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Environment

Stellantis reveals stylish, affordable, capable EV – why can’t the US have it?

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Stellantis reveals stylish, affordable, capable EV – why can't the US have it?

Chrysler parent company Stellantis is sinking billions on electric Jeeps and Chargers that no one wants, but the they’ve developed market-leading EVs in Europe, and this latest, £36,995 DS Automobiles No4 is exactly the sort of electric crossover that could rejuvenate the brand’s American prospects. The only question now is: why won’t they bring it here?

Both the Dodge and Jeep-branded Stellantis EVs are being offered with huge discounts in a bid to generate some kind of market interest, but the company’s American product and marketing teams seem to be deeply confused about what the market actually wants. Over in Europe, though, Stellantis’ EVs are hot sellers – and this latest five-passenger crossover from the company is expected to steal even more sales from the Model Y.

The new all-electric No4 E-Tense model from Stellantis’ French brand DS Automobiles will be offered at three trim levels starting with the Pallas at £36,995 (approx. $48K US), rising to £39,160 for the Pallas+ and topping out at £41,860 (approx. $56K US, before incentives get applied) for the range-topping Etoile. 

All three trims use a front-mounted electric motor rated at 213 hp, drawing from a 58.3‑kWh battery pack. That setup delivers up to 280 miles on the WLTP cycle (about 240 miles by EPA estimates). That feels like a lot of miles from a relatively small battery, aided no doubt by the DS No4’s aerodynamic. Inside the No4’s sculpted flanks is enough room for five adults and a bunch of their stuff, as well as an incredibly sexy dash and infotainment layout that (in the official press photos, at least) seems positively slathered in Alcantara (think “vegan suede”).

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With 120 kW fast charging capabilities, the No4’s battery pack can replenish from 20 to 80 percent in under 30 minutes. Thanks to built‑in V2L/V2X tech, the No4 can also supply power back to external devices.

Electrek’s Take


I think it would be a hit. As for why the marketing gurus at whatever’s left of the old Chrysler corporation seem to think an electric muscle car that no one asked for or a Dodge-branded Alfa Romeo that no one will ever ask for is a better use of their marketing dollars – that’s simply beyond me.

Maybe you guys know? Check out these photos of the new DS No4, then scroll on down to the comments and let us know what you think of Stellantis’ US product plans, and whether or not they messed up canceling the Airflow after all.

SOURCE | IMAGES: DS Automobiles.


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