Source: US News —
For just about any homeowner, talk of falling housing prices can spark panic. With homeownership being the major financial and personal investment it is, there’s a natural anxiety that comes with any potential threat to that investment.
However, housing market activity to date does not show a year-over-year decline of home prices on a national scale – at least not yet. While some data sets show month-to-month home price declines, month-to-month data is more volatile and does not signal a drastic shift in the market on its own.
There is a marked deceleration in home price growth due to a combination of already high home prices, high mortgage interest rates, low housing inventory and economic uncertainty on a larger scale. Many would-be homebuyers are simply opting out of a purchase now.
As a result, properties on the market sit a bit longer, and sellers are dropping their asking prices more often than during the previous two years, when buyer activity was red-hot and dropping a listing price was almost unheard of.
“Right now you’ve got some home sellers that are delayed in their thinking that the prices are what they were six months ago,” says Nick Bailey, president and CEO of Re/Max.
To help you better understand the data, we’re breaking down the different kinds of price drops, declines and decelerations you may hear about, as well as what this means for home prices now and in the future.
When you hear about home prices dropping, it can mean one of a few different things. Clarify which type of dropping price it could be:
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