flexiblefullpage - default
Currently Reading

A Housing Slowdown Is Underway—Here Are the Markets Where Prices Are Expected to Fall

Housing Markets

A Housing Slowdown Is Underway—Here Are the Markets Where Prices Are Expected to Fall

Popular housing markets like Boise, ID saw record growth throughout the pandemic, but affordability concerns are causing buyers to pull back, and home prices are beginning to fall as a result


July 25, 2022
Home on stack of coins falling onto home buyer
Image: Stock.adobe.com

Home sales are falling at a steady pace across the U.S. as inventory levels continue to rise in a housing slowdown that has some experts sounding the alarms of an imminent recession. As the Fed continues to put upward pressure on mortgage rates to slow runaway inflation, home price growth is decelerating after years of consistent gains, but some popular markets are contracting significantly faster than other parts of the country, Fortune reports.

In its most recent July 2022 housing market analysis, CoreLogic found that 98 markets have a greater than 50% chance of seeing local home prices decline over the next 12 months, including Boise, Philadelphia, and San Francisco. Though CoreLogic’s assessment may seem promising for priced-out buyers, U.S. home prices are expected to rise another 5% nationally between May 2022 and May 2023.

In some of these at-risk markets, including San Francisco, that home price "top" might have already been blown-off. Prices are already falling in the Bay Area on a month-over-month basis. It remains to be seen if those price drops will last long enough for the market to actually get a year-over-year negative reading in 2023.

"We've definitely seen a drop in sale prices over the last two months due to the double whammy of the Nasdaq correction and rise in interest rates," Kevin Chiao, a broker in the Bay Area, tells Fortune. "I initially thought the Bay Area market wouldn't see much price decline due to lack of inventory, but it seems I may have been wrong."

Read more

Related Stories

Housing Markets

Homeownership Dreams Put On Hold by Buyers in Popular Metros

The housing market may be slowing, but buyers in popular metros like Austin, TX are still seeing record high home prices 

Affordability

Inflation Is Rising the Fastest in Sun Belt Cities—Here’s Why

Homebuyers who flocked to Sun Belt metros sent prices soaring throughout the pandemic, and rapid inflation is only exacerbating an existing affordability crisis

Community Development

These St. Louis Lawyers Created a Replicable Model for Neighborhood Renewal

The SmithNMTC corporation is revitalizing neighborhoods across the U.S. by using a federal tax credits program to finance affordable housing projects

Advertisement
boombox1 -
Advertisement
native1 - default

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.