A costly combination of record home price appreciation and fast-rising mortgage rates is pricing out a growing share of buyers and actively cooling a long-frenzied market. In fact, experts say that the current housing correction marks the biggest decline in buying activity since 2006, and as a result, prices in overheated housing markets are gradually starting to drop.
Among the 392 regional housing markets tracked by CoreLogic, 45 had a greater than 50% chance of seeing local home prices decline over the next 12 months, a 73% monthly gain from just 26 at-risk markets in May, Fortune reports. The vast majority of U.S. housing markets are now considered “overvalued” and could see softening demand and slashed asking prices as more buyers reach their tipping points.
Among the 392 regional housing markets that CoreLogic measured, 159 markets were in the "very low" risk grouping. Another 152 housing markets landed in the "low" group, 36 markets qualified for the "medium" group, and 41 markets were in the "high" group. CoreLogic categorized only four markets as having a "very high" likelihood of a price drop: Bellingham, Wash.; Bend, Ore.; Bremerton, Wash.; and Lake Havasu City, Ariz.
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