Home prices in pandemic hotspots cooled last week despite mortgage rates dropping to 5.3% on a 30-year loan. This 5.3% drop was the biggest one-week decline since 2008, according to the Mortgage Bankers Association (MBA).
Proportion of Active Listings with Lower Prices Increasing
According to Zillow, the proportion of active real estate listings with lower prices has increased in all 50 of the largest US metros.
Quiz:
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
Key:
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Overall, 11.5% of homes in the country’s largest metros have seen price cuts. Pandemic hotspots are seeing even more of those cuts. Take a look:
Softening Housing Markets
Metro Area Share of Price Cuts
Sacramento CA 14.9%
Salt Lake City UT 15.5%
Phoenix AZ 13.3%
Las Vegas NV 13.7%
Riverside CA 12.6%
San Antonio TX 12.3%
Austin TX 9.6%
Nashville TN 12.5%
According to Edward Seiler, associate vice president of housing economics at the MBA, “Inflationary pressures and rates above 5% are both headwinds for the housing market in the coming months.”
Investors Taking Wait & See Stance
According to Zillow, “Investors are pricing in more risk (attributed to) an economic slowdown and a potential recession, which may slow the pace of future interest rate hikes at the Federal Reserve.”
Even though mortgage rates declined during the last two weeks, the MBA indicated that there was no corresponding uptick in mortgage activity. Just the opposite, in fact. The MBA reported that purchase applications were down last week as shoppers were dealing with affordability challenges and scant home inventory.
Thanks to Zillow and Bloomberg.
URGENT! Exclusive Invite: Join Premier Coaching for FREE! You read that correctly, Premier Coaching for the first 30 days is 100%, no strings attached FREE. Here is what you get: DISC Personality Test, Seller and Buyer Scripts, Presentations, Lead Generation Systems, Market Shift Plan, Real Estate Treasure Map, Members Only Community Groups (and a ton more). The best part is you will have a DAILY Live Coaching Call with a Harris Certified Coach. Yep, you read that correctly….every weekday you will attend a semi-private coaching session with your coach. All of this is 100% FREE. Of course, you want to join Premier Coaching. There is Zero Risk and joining costs you nothing. This is the Real Estate Success system you need in this quickly changing market. Join Premier Coaching NOW.
—
