2 Reasons House Prices Will Start Falling Sooner Than Expected
My latest on Forbes.com.
Many real estate analysts are forecasting U.S. house prices to fall because mortgage interest rates have risen so much. Some are expecting small declines, others, large, but most mention that house prices are “sticky” on the downside and because of that they don't expect prices to start falling until many months after house sales have started falling. Most don't expect these sticky prices to start falling significantly until next year… Read the full article on Forbes.com.
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Great article, John! I'm shocked at what's going on where I'm at. I'm seeing $25K to $40K price reductions on houses in the <$500K segment. Inventory has skyrocketed and the majority of listings have at least some price reductions on them. The true number of price reductions is probably higher because so many agents delist and relist at a lower price, so the stats may not be catching all the true price reductions.
I'm also starting to see multiple fixer listings at the bottom end of the market as well. I haven't seen a single fixer listed on the MLS in my area for at least two years and now there are a number of them. It's also interesting to see a lot of vacant listings - many of which are obviously rehabbed (barn door, shiplap, subway tile, etc., LOL). A lot of investors got caught holding the bag, apparently.
Interesting times! All this craziness is going on and we're only a few months into the crash. Should be interesting to see how things pan out over the next few years.