The US housing market is currently experiencing a boom, with the most significant annual increase in the value of single-family homes and rents, historically low foreclosure rates and the highest number of home sales in 15 years. But with the recent drop in home prices, many people are wondering if this trend will continue. According to Black Knight, a provider of mortgage technology and data, home prices fell by 0.77% from June to July, the first monthly decrease in nearly three years. CoreLogic, a real estate analytics firm, found that 125 markets are more than 50% likely that local home prices will decline in the next 12 months.
In July, 98 markets were more than 50% likely that the price of housing would fall in the next 12 months. In June, 45 markets were at risk. In May, only 26 markets fell in that field. CoreLogic also predicts that in 2024 there will be another 5% dip in home prices, although this will vary depending on the market.
However, despite this slowdown in the rate of appreciation, the consensus of housing experts is that home values will not plummet in the short term. The main reason for this is that there aren't as many options in the housing market, making it difficult for people to find their dream home. This is compounded by buyers whose incomes are declining or those who lose their jobs due to the pandemic, which reduces demand in the housing market. It's important to remember that a housing market forecast can only give you an idea of what to expect if you buy or sell a home in the coming months.
Ultimately, it's up to you to decide if now is a good time to buy or sell a home based on your own financial situation and goals.