Pros say buyers in some markets are already getting, or could soon get, some relief in the form of lower home prices. Over the past four to eight weeks, experts have already noticed downward price pressure in a previously robust high-end market. (Click here for the lowest mortgage rates.) “These are markets where the median selling price to list price ratio is well above 5% of list price. Examples include San Francisco, San Jose, Austin, Denver and Seattle,” he said. Co-owner Chris Stroud says. Founder of HouseCanary, a national technology-enabled brokerage firm that provides residential real estate analytics.
All of the above cities experienced a sharp decline in their respective median closing prices in July and August. This is because buyers no longer need to participate in bidding wars or present the above offers in search of a competitive edge. “The market’s median closing price has been fairly stable for the most part over the past few weeks as excesses have been removed from the system,” says Stroud.
The markets with the highest markdowns in July data from Realtor.com are mostly in the Sun Belt, with Las Vegas, Phoenix, Austin, Sacramento, Denver, Portland, Dallas/Fort Worth, Nashville, Tampa, and San Diego. It is included.
Where will we see housing price reductions in the future?
Realtor.com senior economist George Latiou said the same market could fall further. “Heading into the next few months of rebalancing, we expect list prices to become increasingly pressured in these markets as seasonal trends take hold and buyer traffic deepens from the summer peak. will be
Goldman Sachs’ team of strategists said a price correction is likely to be seen in western metropolitan areas, “particularly in markets with lower levels of housing affordability, such as Seattle, San Diego and Los Angeles.”
Experts say long-term price declines will depend in part on where inventories grow too quickly and excessively, as well as interest rates dampening demand. “Coming into the rate hike period, much of the market was experiencing record low inventories. The environment has so far prevented significant price declines in many parts of the country.” explains Stroud, saying things could change.
Markets with the highest out-of-state inflows, such as Boise, Denver and Salt Lake City, may be more vulnerable to price cuts as the shift to remote work is nearly complete, NerdWallet said. said Kate Wood, a housing expert at “It’s a double hit for home sellers as the influx of wealthy out-of-state residents has dried up and many locals are getting discounted prices. While still not buyer-friendly, sellers probably shouldn’t expect an offer without the bidding wars and surprises that have proliferated over the past two years,” says Wood.
As housing markets retreat on the back of rising mortgage rates, prices and inflation, some of these markets are finding that inventories continue to build and there aren’t enough buyers, Ratiu said. increase. “For homeowners looking to sell, the answer is an increasingly obsolete one: price cuts. Rising inventories and declining buyer traffic are starting to put downward pressure on prices, even as prices continue to rise,” says Ratiu.
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