The Federal Reserve’s housing reset will boost inventory and slow homebuyer demand, and many market players are wondering what that means for home prices in the nation’s hottest housing markets. While some popular metros continue to see fast-paced sales and rising list prices, others seem to be reaching a tipping point, Fortune reports.
Among the 392 regional housing markets tracked by CoreLogic, 125 have a greater than 50% chance of seeing local home prices decline within the next 12 months, and overvalued markets like Boise and San Francisco are topping that list as housing costs reach unsustainable highs.
Why does CoreLogic keep slashing its risk assessment? It boils down to souring U.S. housing market data. On a year-over-year basis, existing home sales and new home sales are down 20.2% and 29.6%, respectively. That's the sharpest housing activity contraction since 2006.
“Probability of home price decline continues to intensify as mortgage rates hit a new high in June and housing demand took a considerable dip," Selma Hepp, deputy chief economist at CoreLogic, tells Fortune.
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