Tag Archives: Home price declines

NAR Chief Economist Lawrence Yun said, "The latest weakness in existing home sales still reflects the buyer bidding process in most of October, when mortgage rates were at a two-decade high before the actual closings in November.”

Home price declines are causing Americans to lose money when selling their homes, according to a new report from Redfin, which showed that the typical homeowner in San Francisco who took a loss while selling sold their home for roughly $100,000 less than they bought it for.

“While the continued imbalance between buyers and sellers continues to pressure home prices, June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market, and strong consumer spending,” said Selma Hepp, CoeLogic Chief Economist.

Oregon, Washington State, and higher-priced areas of the country are absorbing a larger share of recent market declines based on data from Q1 2023, while other lower-priced areas show less impact from the recent downturn.

About 7% of the 221 metropolitan areas tracked by the National Association of Realtors reported double-digit price gains in Q1, falling from 18% from Q4 2022.

Coastal areas and large cities are the most likely candidates to see home price declines in the future.

According to the National Association of Realtors, the average price of a home rose to $378,700 in the fourth quarter of 2022.

"There are economic signals pointing to recession but also signs that a 'soft landing' may be in the offing," said Doug Duncan, SVP and Chief Economist, Fannie Mae.

According to a new Redfin analysis, a projected 3% of pandemic homebuyers could fall underwater with next year’s estimated 4% home price decline, with metros such as Sacramento and Phoenix at a higher risk.