Price cuts on the US Housing Market just hit their highest level in six years.
With 24.3% of sellers reducing the price of their house in June 2024.
That's the highest rate since 2018.
A signal that there will be downward pressure on home prices in the 2nd half of 2024. pic.twitter.com/sjUNDu2Sa4
— Nick Gerli (@nickgerli1) July 9, 2024
2) Moreover – many sellers are still coming to market at a very high list price.
So while they're doing lots of price cuts, it's from a price point that was high/unrealistic.
For instance -the Median List Price of houses in the US just hit $445,000 in June 2024. Still 40% above… pic.twitter.com/NdQFT53tI9
— Nick Gerli (@nickgerli1) July 9, 2024
4) Sellers will need to get with reality at some point and give up some of their equity to bring homebuyers back in.
That's the cleanest, and easiest way, for the housing market to reach equilibrium.
A trend we are starting to see play out in the South.
— Nick Gerli (@nickgerli1) July 9, 2024
6) The drops in value are also coming in a market like Phoenix. Albeit a bit slower.
You can see on this listing, being sold by an investor, that they are now below their March 2022 acquisition price.
Been on the market for 82 days. So likely will cut by more. pic.twitter.com/auoinn1I8K
— Nick Gerli (@nickgerli1) July 9, 2024
8) Head to https://t.co/yTZTC7FPDB to research the housing trends in your market. Particularly the inventory and price cut levels. These are two key indicators that are telling you the current direction of the market.
— Nick Gerli (@nickgerli1) July 9, 2024
Snapshot of U.S. Housing in 2009
First American CoreLogic found that by the end of 2009 11.3 million homeowners – or 24% of all homes with mortgages – were underwater.
Nevada was the state with the worst record at 70% of all mortgaged properties underwater.
For many… pic.twitter.com/zkz64Uco4x
— Reef Insights (@ReefInsights) July 9, 2024
Here's 2.3 Trillion reasons why your house isn't worth what you think it is.
The Federal Reserve can't sell these Mortgage Backed Securities.
If they did, home prices would collapse.
This is welfare for the rich using taxpayer money. pic.twitter.com/sUvlc4s1iy
— Darth Powell (@VladTheInflator) July 8, 2024
Housing market sees more price cuts as inventory continues to grow
The median price of single-family homes in the U.S. is just under $455,000. That peaked a few weeks ago and is inching down each week for the second half of the year.
The housing market is ‘stuck’ until at least 2026, Bank of America warns