Housing Market Finally Sees Consecutive Negative Home Prices

Housing market finally sees consecutive negative home prices
Hey gang well the tide has officially turned for the US housing market: according to NAR we have had the 2nd month in a row with negative median home prices.
 

Take a look at this graph which shows two of the major real estate indices (NAR report and the Case Schiller Index)
 

NAR (which is the National Association of Realtors) looks at more real time data than the Case Schiller which is why the blue line goes through now and the red line is trailing by a couple months.

Either way you can see that we've had several months of price declines in a row and finally crossed that railroad track looking line that's bad news bears for home prices...

 

But it gets worse. This time last year prices were still going up. We actually hit the peak around May / June of last year so if we're already seeing negative YoY pricing now, that gap is about to widen a lot more over the coming months:
 

Another statistic you might see in the news soon is rising inventory. Unusually for this time of year, the latest inventory data shows an increase. This anomaly can be attributed to the completion of new construction homes.

Last year we witnessed an all-time record high  of 1.7 million homes under construction, and these properties are just starting to be completed.

The most recent figures indicate that 170,000 new homes have already been added, significantly impacting the nationwide housing inventory. 

And this is just the tip of the iceberg




Rest assured, I'm keeping a close eye on the data and will continue to report the results to ensure you stay informed. But let's take it a step further. If you or anyone you know has questions about real estate or specific plans in mind, don't hesitate to reach out. I'm here to provide expert guidance tailored to your needs.

To take the first step towards gaining a comprehensive understanding of your property's current value in this evolving market, schedule a time to call me. Let's arrange a personalized home evaluation that will equip you with the insights you need to make informed decisions.

I hope you find these emails helpful. And remember, if you know anyone who might enjoy these newsletters as much as you do, please forward them to a friend.

 
Real Estate in the News
-The Onion
 
Thirty One Percent of U.S. Metros Had Home Price Declines in Early 2023
-World Property Journal
 
-ABC News
 
-Realtor.com

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