Source: Axios —
The housing market has returned to earth. Home sellers can’t just name a price and expect buyers to pay; meanwhile over a trillion dollars in wealth in the form of home equity has evaporated.
Why it matters: Think of this less as a crash and more as a correction. The pandemic-driven housing boom was a bonkers moment of real estate demand.
- The Federal Reserve raised rates and crushed that demand, as intended.
State of play: During the pandemic boom, houses were selling for more than list price. A “historically unusual” situation, says Nicole Bachaud, senior economist at Zillow.
- Sellers are now accepting less than list prices, on average, to make sales, a return to pre-COVID trends.
- Experts say this is a return to normal in a lot of ways, even though 7% mortgages feel abnormal. “It’s a really awkward phase of the market because we’re coming off of this pandemic frenzy,” says Bachaud.
These are “too” general statements. Many areas in Loudoun County do not have falling prices. Only the amount of price acceleration has slow down specially for 4-Bedroom Townhomes and Single Family Homes. So homeowners need to see their local Realtors for the “REAL” home prices trends in their local areas. Josh Morimoto