Home News Update: The home price correction in America’s 400 largest housing markets, as shown by one interactive map

Update: The home price correction in America’s 400 largest housing markets, as shown by one interactive map

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That kind of looming loss explains why Redfin recently announced it would be closing its iBuyer business that uses the algorithm.. only US housing market still in adjustment modethe math doesn’t make sense.

“When the shiitake mushroom hits the fan, [investors] I want to go first The way to do this is to identify where sales are lowest and drop below his 2%.And if it doesn’t sell in the first weekend, move [the price] under [again],” Redfin CEO Glenn Kelman recently said: luck.

Flippers and homebuilders are scrambling to move inventory in markets like Las Vegas, where home prices are down 6.93% from their peak in 2022, but all markets are (at least not yet). It’s not like that. Many markets are still at their 2022 peak. Simply put, shiitake mushrooms have yet to win ‘fans’ in all markets.

for better understanding Housing adjustments in progress, luck examination Latest Zillow Home Value Index (ZHVI) data.

Of the 400 largest housing markets in the country, 219 house prices have fallen from their 2022 peak. The average drop rate is 2%.

The adjustment in house prices has certainly become national, but it continues to hit two types of markets more than others.

the first group is A ‘severely overvalued’ housing marketThese are often either the second-hand housing market or boomtowns where home prices skyrocketed well beyond what local incomes could support during boom times.

Look no further than Austin. Moody’s Analytics is Q2 is overvalued by 61.1%. This bubble level may explain why Austin’s home prices have fallen 10.21% from his 2022 peak. Other “massively overvalued” markets such as Reno (house prices fell 8.47%), Boise (-7.06%) and Salt Lake City (-6.89%) are not far behind Austin either.

The second group consists of high-cost markets along the West Coast. Places like San Francisco (home prices fell 8.18%), Santa Cruz (-7.58%) and Seattle (-6.28%). According to John Burns Real Estate Consulting, these markets are sensitive to hyper-mortgage rates. More often than not they are hit by a double punch. Not only is the high-end real estate market more rate-sensitive, so is the technology sector.

219 major markets have fallen from their 2022 peak prices, while another 181 markets remain at their 2022 peak prices. The ongoing mortgage interest rate shock Haven’t yet seen the value of the house as measured by Jiroin markets such as Philadelphia, Baltimore, Virginia Beach, Oklahoma City and Richmond.

But that doesn’t mean the house price correction won’t affect markets like Virginia Beach and Philadelphia.If mortgage interest rate Overpriced and unsold inventory remains—Remains tight nationally— It could put further downward pressure on house prices if they continue to rise.

That’s what Moody’s Analytics expects.

Moody’s does not expect a 2000s-style housing crash (U.S. home prices fell 27% from peak to trough), but expects U.S. home prices to fall about 10% from peak to trough. . This includes declines of 14.2% and 5.3% in markets such as Virginia Beach and Philadelphia respectively. (Here it is Moody’s outlook for the 322 largest markets in the country).

On the one hand, some of these 2022 house price corrections are pretty big. On the other hand, most of these markets are pandemic housing boom.

From March 2020 to May 2022, Austin home prices increased by 75.36%. -10.21% haircuts since then. That took Austin’s pandemic-induced home price gains down to 57.46%.

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