Home prices plunging in ‘pandemic boomtowns’ as market slumps – New York Post
The West continues to be ground zero for this phenomenon, with Boise, Idaho, leading the way with nearly 70% of homes for sale seeing price declines in July.
In 2020, 2021, and early 2022, the West became an attractive destination for Americans who had been liberated by telecommuting. As a result, home prices in the fastest-growing areas skyrocketed further, compounding into prices over 50% higher in some areas.
Redfin predicted that price declines would probably level off as sellers adjust to a changing market and the dynamics of the housing market power are shifting.
Home sellers in Boise have been lowering their prices because they had unrealistic expectations about both prices and timeframes, and are now seeing less competition for their listings. Homes are also sitting on the market for longer periods of time.
Although the housing market has slowed significantly, prices remain elevated, and a good number of buyers are continuing to pay full price, Pendleton said.
Experts said an economic tipping point in Utah would probably send house prices tumbling down the state. Yet, according to a top Utah housing expert, the market appeared to be approaching a sense of “normalcy” in June.
A new guide by credit-reporting agency Fitch indicates that the likelihood of a major collapse of the U.S. housing market is rising, but that a mild slowdown remains the more likely housing market outcome.
Fitch points to a number of factors as “key indicators” for the housing market’s health, including U.S. GDP growth, unemployment, consumer confidence, and housing affordability. If trends weaken beyond what we expected, Fitch might lower its projections.
The Federal Reserve has been tightening its monetary policy, and mortgage rates have almost doubled since January, creating a crisis of affordability for would-be homebuyers.
According Redfin, here is the data across 97 most populous U.S. metros
Share of homes for sale with a price drop in July 2022
|U.S. metro area.||Share of homes for sale with a price drop in July 2022||Share of homes for sale with a price drop in July 2021|
For more coverage on this story, check the following additional news sources:
- Home prices plunging in ‘pandemic boomtowns’ as market slumps New York Post
- Orange County homebuying cools 38% after 48% higher house payments OCRegister
- Cheap Homes? House Prices Are Being Slashed In Former Pandemic Boomtowns Bloomberg
- How many DC-area home sales are falling through? WTOP
- Cooling housing market: Idaho, Colorado, Utah sellers drop prices in July Fox Business