{"id":8898,"date":"2022-10-07T13:00:19","date_gmt":"2022-10-07T17:00:19","guid":{"rendered":"https:\/\/www.realtyhop.com\/blog\/?p=8898"},"modified":"2022-10-07T13:50:12","modified_gmt":"2022-10-07T17:50:12","slug":"home-prices-are-falling-at-fastest-pace-since-2009","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/blog\/home-prices-are-falling-at-fastest-pace-since-2009\/","title":{"rendered":"Home Prices Are Falling at Fastest Pace Since 2009"},"content":{"rendered":"
Home prices rose an astonishing 33%<\/a> between Q2 2020 and Q2 2022 but are now coming back down to earth, if only slightly. New reporting from data firm Black Knight<\/a> concludes that home prices dipped for two straight months in July and August, declining 1.05% and 0.98% in each month, respectively, and a combined 2.0% for the two months. Both represent the largest monthly decline in home prices since the beginning of 2009. <\/p>\n In a press release, Black Knight Data & Analytics President Ben Graboske discussed the importance of the recent home price decline. \u201cThe only months with materially higher single-month price declines than we\u2019ve seen in July and August were in the winter of 2008, following the Lehman Brothers bankruptcy and subsequent financial crisis\u201d, Graboske said. <\/p>\n Graboske also mentioned that housing inventory is a wildcard that will affect housing prices going forward. Right now, the housing supply is highly restrained by inadequate construction and high-interest rates that dissuade buyers from listing their properties. <\/p>\n \u201cIt will be worth watching inventory levels closely in coming months for any sign of a shift in seller sentiment. Right now, prospective sellers are not only coming to grips with falling demand and declining prices due to sharply higher interest rates, but they also have a growing disincentive to give up their own historically low-rate mortgages in this environment. Some may be waiting out the market to see if demand \u2013 and prices \u2013 return in the spring\u201d, Graboske said. <\/p>\n Because of high-interest rates and expensive home prices, it seems increasingly likely that home prices will fall. Federal Reserve Chair Jerome Powell recently predicted a \u201chousing market correction<\/a>,\u201d but what will this correction look like? <\/p>\n Some firms expect home prices to continue increasing at a more steady level. A new report<\/a> from CoreLogic forecasts that annual home price growth will fall to 3.2% by August 2023, representing a normal level of annual price appreciation. However, many other firms predict zero or negative price growth over the coming year. <\/p>\n Moody\u2019s Analytics<\/a> also predicts that home prices will fall between 0% and 5%. However, if there is a recession, home prices will decline by 5% to 10%. Goldman Sachs<\/a> predicts a 5% to 10% depreciation in home prices, but there could be further declines if the national economy tanks. Morgan Stanley<\/a> forecasts that home prices will fall 7% by the end of 2023, which would be the second-largest decline since The Great Depression. <\/p>\nWill Home Prices Continue to Fall?<\/h2>\n