Source: Insider —
US house prices are set to fall further this year as the Federal Reserve pushes ahead with interest-rate increases, according to real-estate veteran and board member of the Mortgage Bankers Association Jeff Taylor.
“I anticipate on a national level, this year, we’ll probably see, four to 6% price decrease. And in some markets, you know, you might see seven to nine,” Taylor told Insider. The forecast implies a second straight year of home-price declines, after the Fed raised benchmark borrowing costs from near zero to almost 5% over the past 11 months to rein in inflation.
Taylor said his call stands despite 30-year mortgage rates falling almost 100 basis points since October, which could potentially attract some homebuyers back into the market. Given the continued uncertainty around inflation and interest rates, Taylor said he expects trading volume in the housing market to shrink to its lowest level in 40 years.
“I think that we’re going to end up at about a $1.5 trillion to $1.6 trillion market,” he said.
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Prices are not going down this year. Not sure which area you think that is happening in? Maybe swamp land in Florida? I have been a real estate broker for 30+ years and there has never been a market where there is basically no inventory. Will continue to be that way for years to come. I had an open house yesterday in Wayne, PA and 37 families came through but only ONE person got the house by bidding $45,000 over the asking price.
36+ homes in these buyers’ price range and desired location will not be coming on the market anytime soon. Maybe 2-3 a week currently? And there are probably double the amount of the same buyer out there plus new buyers coming in to the marketplace.
Several reasons for this:
-Buyers who have 2.75-4% interest rates are not selling because they want to keep those interest rates.
-More would be sellers are re-doing or adding space on to their current homes.
-Since many people are going to continue to work remotley companies are not relocating their employees like they used to. Plus it is very costly now to move someone.