According to a 2022 report, the housing market is currently in flux. It results from high mortgage rates, inflation, and general economic unpredictability. Some disgruntled home buyers hoped that the listing prices were finally cooling off. They wish for this outcome after a prolonged hot housing market. Well, the prices are sort of mellowing. The only difference is where people are looking. Home sellers are giving in to the mounting pressure on affordability. It is a result of swift increases in mortgage rates. So, the possibility of a significant decline in house prices is becoming more and more likely. There are several analyses on median sales prices, inventory changes, and housing data. So, California is cooling off the quickest among Western markets, topping the list. Many sources reviewed the significant metropolitan areas in the states and ranked them. They also looked at several indicators of demand and competition for housing. Here are a few other states to consider as the market cools down.
California
In California, homebuyers seized this window of opportunity. They are making the most out of the market after a brief respite from rising mortgage rates. Sales and statewide median home prices increased due to the increased demand. Although home prices may have increased across the state. But, many regions, including the Bay Area and Los Angeles, saw monthly price declines. The prices are falling at around 3.7% and 1.9%. Sources also saw a notable 9% increase in sales in the San Francisco Bay area. Like in all other states, higher interest rates and a lack of supply are noteworthy. They are the parameters driving California's housing market. In stunning California, there will never be enough supply. But some people worry that interest rates are a major unknown. The FED's actions this fall are unclear to housing experts. But, most of them predict more rate increases that would hurt the housing market. According to the monthly survey conducted by CAR, the market is declining.
Washington
Data identified the five areas in Washington that had a decline in home prices this year. Three factors are to blame for the high-risk probability of price decline in the state. One of the reasons includes market overvaluation. A drop in consumer confidence board and an increase in mortgage rates follow behind. Sources take note of the metro areas in the Pacific Census region, such as those in Washington state. They believe they are more sensitive to consumer confidence and mortgage rate changes. Finally, a possible decline in home values may worry those looking to sell. But, prospective buyers are more troubled by the high cost of housing.
Colorado
During the pandemic, Colorado's housing market accelerated. This situation happened as wealthy coastal emigrants sought out more living space. They also wanted more recreational opportunities. The state's housing market had been growing for years. Local real estate agents who help people sell homes agree. These agents think the housing market slowed in the previous month. It happened a month after interest rates inched up. For example, in Colorado and Denver, houses were for sale one day longer in June than in May. Previous months also saw fewer home sales than the preceding months of the year prior. But, it seems as though sellers are afraid that buyers will not gain interest in their homes. So, they keep adding more of them to the market. But, for many, it is not the cost. Home sellers in Denver appear confident that they can still get at least some of the inflated prices. They believe it is still attainable, as seen throughout the metro over the previous two years. According to the report, home sellers are not slashing prices more in Denver than in other places. The market is also cooling because there is a decrease in housing demand. The metro area of Denver, Aurora, and Lakewood ranks 13th in the country for a decline in housing demand.
Iowa
The process of purchasing a home is complex and upsetting. Many will need to invest a significant amount of money in finding the ideal home. They also will spend weeks touring properties and completing hundreds of forms. Starting the process at the right time can help make the process of purchasing a home easier. In Iowa, trends, mortgage rates, and housing supply fluctuate from month to month. Iowa flies under the radar when it comes to great places to buy a house. Many will love living in Iowa for many reasons. It includes the low cost of living, the state's education system, and its safe cities. On a list of the most affordable states in America to live in, Iowa comes in first. In the Hawkeye State, a home is within reach for only 10.6% of the average household income. It costs only $147,800 to buy a house. There are miles of farmland in this Midwestern state, which produces the most corn in the nation. There are still lots of large cities where you can live. Des Moines, Iowa City, and Cedar Rapids are the three biggest housing markets in Iowa.
Oklahoma
Many factors contribute to Oklahoma City's inclusion in the top real estate markets. According to sources, one of them is the state's robust sales activity. So to asses Oklahoma, sources based their judgment on real estate investors' standards. These include a thriving real estate market, affordability, and the economic environment ranking. According to data, the Oklahoma City real estate market has a positive outlook. Additionally, Oklahoma is one of the top cities for renters, according to WalletHub. Activity in the market, affordability, and quality of life are still in consideration. These are some parameters when ranking the best markets for renters. Now might be a great time to act for those considering investing or purchasing a home in Oklahoma. The median home price in Oklahoma is still one of the lowest in the country. As a result, it makes homeownership very accessible. In the greater Oklahoma City area, the average house is worth about $188,000. There are currently low home prices compared to other areas of the country in Oklahoma. So, there has never been a better time to enter the housing market and buy a home.
Final Thoughts
People are finding it more challenging to afford homes. This event resulted from the stock market entering a bear market last month. The inflation rate, which is currently above 8%, also affects the situation. Not to mention the potential for a recession, it is easy to see why homes become expensive. Experts predict home prices will drop when enough buyers decide to wait it out. But the process will take time. Even though the supply of homes is now increasing, there are not enough of them available to make ends meet. So, the ideal situation is to halt the rise in home prices and give prospective buyers more choices. Inventory still needs to increase to make this outcome attainable in the long run. So, as the market in these areas cools off, long term outcomes still need consideration.
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