Home prices are falling fastest in these 10 U S. cities

Table of Content

• Where Are Housing Prices Falling 2022?
• UK Home Asking Prices Are Falling at Sharpest Pace in Four Years
• These US housing markets are most stable as prices fall: Redfin
• Housing Market Crash Predictions For Next Few Years
• UK home asking prices are falling at sharpest pace in four years
• Housing Markets in Which Prices Are Unlikely to Fall
• Orphe Divounguy, senior economist at Zillow

See, when iBuyers like Redfin and Opendoor buy a home, they charge sellers a “service fee” in exchange for the speedy transaction. On the other hand, that buffer means the iBuyer is less afraid to mark down the price. Realtor.com noted they are still up 14% at the national level compared to the same month one year.

Rochester’s housing market has been red-hot since summer 2020 when buyers were in a frenzy attempting to snap up the few listings that had come onto the market—and folks who could suddenly work from anywhere were moving in. Gain a global perspective on the US and go beyond with curated news and analysis from 600 journalists in 50+ countries covering politics, business, innovation, trends and more. But we are still short of what would be considered a balanced market - around 5 or 6 months of inventory.

Where Are Housing Prices Falling 2022?

The current housing market is also being driven by exceptionally favorable age demographic trends. Freddie Mac's own regression research indicates that a 1 percent rise in mortgage rates reduces home price increases by around four percentage points . Morgan expect a greater impact of around six percentage points lower home price increase.

The group also expects mortgage rates to “hold close to 7% over the remainder of next year,” which means affordability will be at its worst since 1985. With lending standards still tight and affordability poised to worsen, consumers should expect their purchasing power to deteriorate even as housing prices fall, the group said. While both measures of distress are historically low, Walden says, they're both on the rise.

UK Home Asking Prices Are Falling at Sharpest Pace in Four Years

The average rate on a typical 30-year mortgage rose this week to 6.94%, from 3.2% in January. The average rate on 15-year, fixed-rate mortgages is now 6.23%, compared with 2.33% a year ago. Economists at Goldman Sachs said they expect home prices to fall by a more modest 5% to 10% next year. The Fed is expected to raise the interest rate by 0.50 percentage points but people will be looking for clues to when it plans to stop and pivot. The longer we stay in 5.25-per-cent-plus mortgage rate territory, the more the pressure will build,” wrote Kavcic.

According to Freddie Mac, there are currently 18 percent more persons aged 25 to 34 than there were in 2006. This represents an increase of 6.6 million prospective first-time homeowners, from 39.5 million in 2006 to 46.1 million today. In addition to the increase in first-time homebuyers, the number of high-income renters who can afford to buy and are of prime first-time homebuyer age has also been growing. Home sales activity kicked out 2022 stronger than anticipated, but rising costs have led to altering their forecast downward.

These US housing markets are most stable as prices fall: Redfin

Palm Bay, Fla., was third on the list, with a decline of 8.9% to $379,995 for the month. And, Long says, there’s a disconnect between buyers and sellers, with both feeling like they’re not getting the deal they want. “It’s moving toward a buyer’s market,” says Joan Bradley, a Realtor® with One Sotheby’s International Realty in Palm Bay. She’s noted the disconnect between the industry’s expectations and reality.

Two metropolitan areas that experienced price declines are San Francisco-San Mateo-Redwood City, CA, and Oakland-Berkeley-Livermore, CA, where prices decreased by 4.3 percent and 0.6 percent, respectively. "As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable," S&P analysts wrote. "Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken." As work-from-home becomes increasingly popular, it is anticipated that the housing market will continue to be undersupplied and that migration to lower-cost areas will continue to rise. This is significant since most booming cities have a major housing shortage due to a previous inflow of population. The prediction for existing home sales has shifted from positive growth of 6.6% to an annual fall of 6.7%.

Finally, we included only the metro with the biggest drop in any state, to ensure geographic diversity. It started with more artists seeking cheap housing who wanted to see Motor City revived to its former glory. Then developers and prospectors came to inflate real estate prices in spite of its still dwindling population. But many locals can’t afford those homes, especially with higher mortgage rates.

However, between June and September, prices fell 2.6%, indicating that some relief is on the way. According to the National Association of Realtors, pending home sales on existing properties fell 4.6% in October. Meanwhile, existing home sales plunged 32% between January and October 2022. However, hot economies eventually cool and with that, hot housing markets move more toward balance.

House prices were up 0.1 percent compared to the second quarter of 2022. FHFA’s seasonally adjusted monthly index for September was up 0.1 percent from August. The 12-month changes were all positive, ranging from +7.4 percent in the Pacific division to +16.2 percent in the South Atlantic division.

UK home-sellers cut their asking prices at the quickest pace in four years after soaring interest rates made buyers more hesitant, Rightmove Plc said. In a separate survey, Redfin looked at cities where residents have high debt compared to income and where home equity remains vulnerable as a result of this. In these areas, homeowners are more likely to foreclose or sell at a loss. "It started with more artists seeking cheap housing who wanted to see Motor City revived to its former glory," reads the report. "Then developers and prospectors came to inflate real estate prices in spite of its still dwindling population."