...
By Omar Mohammed
Reporter, Economy & Finance
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Declining prices in certain housing markets portends a declining reality for homeowners looking to sell, according to a real estate expert, amid a fall in mortgage rates that could help buyers come back to a market that has been unaffordable for many Americans.
In parts of the Sun Belt, which experienced a boom in housing demand because of migration from other parts of the country during the COVID-19 pandemic, the housing market is seeing "skyrocketing inventory" along with "skyrocketing price cuts," according to Reventure CEO Nick Gerli.
"So that means more supply on the market and of that supply, more of it is seeing list price reductions," he told Newsweek. "Perhaps there was a bit of stubbornness at first, one to two years ago, but now many of these sellers are kind of capitulating and reducing the price, especially in Colorado, Arizona, Texas, Florida, Tennessee, price cut rates above 30 percent in those states. The sellers in the market like Denver, and they're listing right now, I mean it's getting ugly."
Read More on News
More From Newsweek Vault: How to Calculate How Much House You Can Afford
...
The development may be challenging for sellers, but for buyers the drop in prices could signal an opportunity to finally purchase a home. Prospective homeowners have been hit hard with mortgage rates at their highest since the turn of the century and record-high prices, making the prospect of owning a house beyond their reach.
More From Newsweek Vault: Compare the Best Refinance Lenders
But that may be about to change, Gerli said.
"In some of these states, this is going to be the most advantageous time to buy in years, at least since 2020 or 2021," he told Newsweek. "We finally have lots of inventory in some of these cities and states and we actually have sellers now being more realistic in cutting the price. So I think buyers [who] have been on the sidelines will find more deals, they'll find more attractive opportunities and listings."
Earlier, Gerli said in posts on X, formerly Twitter, that the dynamic of increased inventory and declining prices seen in the Sun Belt and parts of the South isn't replicated in the Northeast and the Midwest.
"Northeast/Midwest states have very low price cuts in 2024. Illinois has a measly 15 [percent] price cut rate. New York is at 11 [percent]," Gerli said on X. "These rates are half to one-third that of the Sun Belt markets, indicating the increased resilience of the Northeast/Midwest housing market due to higher interest rates."
View 0 Comments
Submit Correction
View Editorial & AI Guidelines