Source: ABC 10 News —
According to the American Enterprise Institute’s Housing Center, home prices are finally declining after 10 years of a seller’s market. The drop is the result of a marked increase in interest rates and constant quality home price appreciation, also called HPA, since January 2020.
Price Changes in the Largest Cities
The seller’s market was extended by the limited supply of homes on the market, a sharp increase in remote work and investors seeking homes as long-term investments. However, AEI anticipates that this will change, predicting that the seller’s market will end in 2023.
A chart from AEI first published by Fortune shows that more than 50 of the 60 largest metropolitan areas in the country have seen home prices drop, several by 5%-10%.
San Jose, California, experienced the most significant decline, with home prices dropping by nearly 11% between April and September. Nearby San Francisco is next, falling 8.5% from record highs.
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I think housing prices will come down another 10% within the next few months. Prices are too high for every one, even for the people who want to change their house. It will be more affordable if the price comes down.