Will home prices drop soon?

WILL HOUSING PRICES DROP IN 2023? Houses are probably going to get cheaper, according to some experts, who say that after nine months of falling sales, a home price "collapse" of up to 20% is likely in the next year. This is due mostly to an increase in supply, interest rates reaching almost 7% and the fact that EVERYONE IS TALKING ABOUT HOMES DROPPING!! There’s no need to worry about a 2008-style housing crash. Low unemployment and recent “rock-bottom” interest rates will prevent mortgage defaults, and lower prices would be a welcome change for hopeful home buyers. My advice....don't shy away from Real Estate. Look to gather up funds and become a buyer in the near future. #realestate #homebuyers #housing #interestrates #sales

Homebuyers canceled a record 60,000 purchase contracts last month because they're waiting for mortgage rates and home prices to fall - that's nearly 18% of pending home sales nationwide, the most since 2013. High inflation and mortgage rates have kept buyers at bay, even as the market begins to cool. More analysts now say they see a broad-based downturn in home prices coming next year. #mortgage #homebuyers

A growing number of economists say the U.S. housing market is facing an actual correction rather than just a flat-lining in prices. An economist at the Federal Reserve Bank of Dallas recently weighed in with a report saying that price declines of 15% to 20% are "plausible," -- although the economist, Enrique Martínez-García, did note that represented "a pessimistic scenario." Other analysts look at the record run-up in home prices during the COVID pandemic and say a drop of 20 percent or more looms in the near future. “We’re at very, very frothy levels right now,” says James Knightley, chief international economist at ING Bank, the global financial institution. “Prices do tend to overshoot to the downside.” Not everyone sees a dramatic downturn. The National Association of Realtors and the National Association of Home Builders say that a shortage of homes for sale will prop up prices even in the face of soaring mortgage rates and dwindling affordability. But housing pessimists predict a sharp decline in home values. “For?affordability?to come back to 2020 [levels] at current interest rates, housing prices have to decline more than 40 percent,” says Vitaliy Katsenelson, CEO and chief investment officer at Investment Management Associates. #housing #housingmarket #mortgagerates https://lnkd.in/ejmiQ6Bf

Homebuyers canceled a record 60,000 purchase contracts last month because they're waiting for mortgage rates and home prices to fall - that's nearly 18% of pending home sales nationwide, the most since 2013. High inflation and mortgage rates have kept buyers at bay, even as the market begins to cool. More analysts now say they see a broad-based downturn in home prices coming next year. #mortgage #homebuyers

More analysts now say they see a broad-based downturn in home prices coming down the pike. This is something of a shift from their previous position, which was that low inventory levels would likely keep prices somewhat propped up. Case-Shiller numbers for September, due out tomorrow, are still expected to show a 10.6% rise in home prices compared to the previous year. Seems like a lot of people are taking the under. Read more on Axios.

A large-scale housing slowdown is becoming increasingly likely, Axios Markets correspondent Matt Phillips reports. The big picture: Existing home sales?have fallen for?9 straight months. The supply of single-family homes is growing. Mortgage rates near 7%. What they're saying:?"In one line: Collapse in prices is coming," wrote Kieran Clancy, senior U.S. economist at Pantheon Macroeconomics. Read more on Axios.com: https://trib.al/YpQsYiy?

The headline is misleading. It will be a correction, not a crash.

Bottom line:?Some decline in home prices is likely in the offing. It won't be a disaster. And lower prices will be welcomed by frustrated, would-be buyers. #homeprices