Connect with us

Business

Home Prices Could Fall Faster, But It’s Up To Your Neighbors

News Agencies

Published

on

Buyers waiting on the sidelines to purchase a home are waiting for two things to happen: A reduction in mortgage interest rates, and a reduction in home values.

While the Federal Reserve’s hikes to their Fed Funds rate will determine where interest rates go, the expected reduction in home values largely relies on their owners.

According to Kieran Clancy, senior US economist at Pantheon Macroeconomics, the rate of decrease in home values might accelerate if previously reticent sellers begin flooding the market with additional inventory in an effort to avoid further price declines.

Read also: Is There Going To Be A Housing Market Crash In 2023?

Clancy emphasized that although home sales and construction have significantly changed to reflect the collapsed demand, home prices still have a long way to go.

If you’re a would-be home buyer on the sideline, you can generate passive income on rental properties while you wait. Here’s how to invest as little as $100 and be paid out on a quarterly basis.

Home prices have just lately begun to trend downward on a monthly basis due to a lack of supply, Clancy said in a note, “but inventory is already creeping higher as many previously reluctant sellers start to worry that their home will fetch a much lower price if they continue to wait to sell.”

In October, the number of homes sold in the U.S. fell for the ninth consecutive month as purchasers withdrew from the market due to rising mortgage rates and high prices.

According to a National Association of Realtors survey, sales of existing homes were down in October compared to a year earlier and down 5.9% from September.

There were decreases in every region of the US both month over month and year over year.

That was the longest stretch of dropping sales ever recorded, dating back to 1999, and it continues a trend that started slowing in February.

Sales in October fell to their lowest level since May 2020, during the pandemic lockdowns, when the housing market was at a standstill. Apart from that, sales last month were the lowest since December 2011.

Read also: The Fed Is Crushing The Housing Market, Not Inflation

“That trickle of supply could quickly become a flood, though, increasing the speed — if not the ultimate depth — of the decline in home prices,” Clancy said. “We think prices need to drop by about 20% from their spring peaks in order to reach a sustainable level.”

To read about the latest developments in the industry, check out Benzinga’s real estate home page.

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Continue Reading
Advertisement

Breaking News

Advertisement

Editor Pick’s

Latest Entertainment

Entertainment3 hours ago

So emotional: ‘The Voice’ Season 22’s top eight compete in Whitney-themed semifinals

‘The Voice’ Season 22 top eight contestants Omar Jose Cardona, Bodie, Bryce Leatherwood, Justin Aaron, Parijita Bastola, Kim Cruise, Brayden...

Hollywood Actress Ellie kemper Spotted in Anjali phougat Jewels by designer dream collection Hollywood Actress Ellie kemper Spotted in Anjali phougat Jewels by designer dream collection
Entertainment4 hours ago

Hollywood Actress Ellie kemper Spotted in Anjali phougat Jewels by designer dream collection

Anjali Phougat is an Ohio-based fashion designer, film fashion wardrobe stylist, entrepreneur, and founder of a luxury fashion brand called Designer...

Entertainment10 hours ago

John Travolta pays tribute to Kirstie Alley: ‘I know we will see each other again’

John Travolta and Kirstie Alley promote the 1989 movie “Look Who’s Talking.” (Photo: TriStar Pictures/Courtesy Everett Collection) The death of...

Entertainment12 hours ago

Kirstie Alley Dead: Star of ‘Cheers’ and ‘Drop Dead Gorgeous’ Dies at 71

CelebrityUS Magazine ‘General Hospital’ Star Jack Wagner’s Son Harrison’s Cause of Death Revealed Amid Scholarship Launch General Hospital star Jack Wagner’s son...

Entertainment12 hours ago

Kirstie Alley Dead: Star of Cheers Dies at 71 After Short Battle with Cancer

https://www.instagram.com/p/ClzqliopUks/?igshid=YWJhMjlhZTc%3D lley Verified • Liked by pradalover__ and others kirstiealley’s profile picture kirstiealley Verified To all our friends, far and...

Entertainment12 hours ago

Morgan Wallen Will Take 2023 ‘One Night at a Time’ on a Massive World Tour

morgan-wallen-tour.jpg 2022 iHeartRadio Music Festival – Night 1 – Show – Credit: Matt Winkelmeyer/Getty Images Morgan Wallen will be chasin’...

Entertainment13 hours ago

38 women accuse director James Toback in new lawsuit of prowling the streets of NYC to lure and sexually abuse, assault, or batter them

James Toback.Thomson Reuters James Toback “prowled” NYC to lure women using his status in the industry, a new lawsuit claims....

Entertainment14 hours ago

Box Office Bust: ‘Black Adam’ Faces Theatrical Losses

“Black Adam” has hardly been given a hero’s welcome in its box office run, generating just $387 million globally after...

Latest Sports

Sports24 mins ago

The Morning Pitt: Quarterbacks gone wild

If it seemed like there was a lot of quarterback activity for Pitt on Monday, it's because there was.

Sports53 mins ago

Here’s where the Bears stand in the 2023 NFL draft after Week 13

The Chicago Bears have the No. 2 overall pick in the NFL draft after losing to the Packers in Week...

Sports1 hour ago

UCLA women’s soccer rallies to beat North Carolina, win national title on wild last-second goal

UCLA rallied from a late 2-0 hole to beat North Carolina in double overtime on Monday night in the women's...

Sports2 hours ago

Bruins-Golden Knights takeaways: Vegas ends Boston’s home win streak

The Bruins' record home win streak ended Monday night against their former coach, Bruce Cassidy, in an emotional game at...

Sports2 hours ago

Steph Curry addresses fake viral video of five straight full-court shots

Steph Curry didn't actually make five straight full-court shots, as a viral video portrays, but he wanted everyone to know...

Sports3 hours ago

Three things to know: Anthony Davis, Lakers playing up to Darvin Ham’s vision

In his last five games, Anthony Davis is averaging 35.6 points on 66.7% shooting with 13.4 rebounds and 3.2 blocks...

Sports3 hours ago

World Cup 2022: Spain and Portugal look to book quarterfinal spots on Tuesday

Unless Morocco beats Spain, there will be six European teams in the quarterfinals.

Sports3 hours ago

Andrew Nembhard joins LeBron James with historic stats after torching Warriors

Indiana Pacers rookie Andrew Nembhard joined a very exclusive club after his historic night against the Warriors.

Technology Hot News

Is Elon Musk Really Going to Buy Twitter? Is Elon Musk Really Going to Buy Twitter?
Technology1 month ago

Is Elon Musk Really Going to Buy Twitter?

Elon Musk, the owner of the electric car company Tesla, CEO of SpaceX, and the richest man in the world,...

WhatsApp services were affected across Pakistan, restored after 2 hours WhatsApp services were affected across Pakistan, restored after 2 hours
Technology1 month ago

WhatsApp services were affected across Pakistan, restored after 2 hours

WhatsApp services were affected in various countries of the world, including Pakistan, and India due to this users were facing...

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies Bitcoin vs Litecoin: A guide to understanding cryptocurrencies
Technology2 months ago

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies

Cryptocurrencies currently occupy an odd place in society. They are no longer the super niche bizarre currency beloved by tech...

Personal data of people is selling on Google Play and Google Ads Personal data of people is selling on Google Play and Google Ads
Editor Picks3 months ago

Personal data of people are sold on Google Play and Google Ads

It’s been two to three years since Google has been unknowingly hosting multiple apps from malicious actors who sell personal...

Protonmail is down a second time in the past 24 hours Protonmail is down a second time in the past 24 hours
Technology5 months ago

Protonmail is down a second time in the past 24 hours

An end-to-end encrypted email service Protonmail is down a second time in the past 24 hours, netizens reported on social...

What's better for the student: a tablet or a laptop What's better for the student: a tablet or a laptop
Technology7 months ago

What’s better for the student: a tablet or a laptop

Some analysts argue that computers have outlived their usefulness. There is some truth in this: PC and laptop sales are...

Tesla founder Elon Musk holds the Twitter deal temporary Tesla founder Elon Musk holds the Twitter deal temporary
Technology7 months ago

Tesla founder Elon Musk holds the Twitter deal temporary

USA: Elon Musk, the founder of companies like Tesla and SpaceX, can actually buy anything in the world. Last month,...

How Zafar Supari is utilizing his ability on Snapchat? How Zafar Supari is utilizing his ability on Snapchat?
Technology7 months ago

How Zafar Supari is utilizing his ability on Snapchat?

Pakistan: Zafar Supari a public figure, businessman, and social media sensation has crossed one hundred thirty-three thousand 133k subscribers on...