What a difference just a few months can make. As the year comes to a close, the red-hot housing market has been brought to its knees by soaring mortgage interest rates.
- “Seattle, Phoenix, San Francisco could all see 20% price drops.”
- Wolf, of Zonda, expects prices could fall by 15% nationally over the next year
- “A really important thing to remember is housing is cyclical,” says Wolf. “We came from a massive run-up in prices, sales, demand in the housing market, and now it’s contracting. This is not new.”
- Nationally, home list prices rose 40.6% in just over two years’ time
- So, a 10%, 15%, or even 20% drop over a two-year span isn’t as significant as it might seem at first.