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.
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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