Home Values Are Falling in Cities Like Seattle and Dallas

Many firms featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and the way firms may appear. Learn more about how we earn cash.

Ads by Money. We could also be compensated in case you click this ad.Ad

After two years of double digit growth, home values in the US are falling.

Much of that decline is attributable to a steep rise in mortgage rates, which have greater than doubled over the past yr. As borrowing costs rose, many potential homebuyers stepped away from the market. As demand eased up, home prices (and their estimated values) began to fall.

Listed below are the cities where home values fell probably the most from November to December, in keeping with recent data from Zillow. The info relies on Zillow’s Home Value Index, which uses the corporate’s data to measure how much a typical house is price.

  1. Seattle, Washington: -4.81%
  2. Dallas, Texas: -1.47%
  3. San Antonio, Texas: -1.33%
  4. San Diego, California: -1.33%
  5. Austin, Texas: -1.30%
  6. Salt Lake City, Utah: -1.29%
  7. Phoenix, Arizona: -1.20%

Across your entire country, the worth of a typical home fell 0.2% between November and December, in keeping with Zillow. On an annual basis, home values are still up 8.4%.

As all the time, it’s price remembering that real estate trends can vary widely on the local level. Home values in Milwaukee, Wisconsin, actually rose 1.1% over the identical time period, in keeping with Zillow, while values in Birmingham, Alabama rose 1%.

Ads by Money. We could also be compensated in case you click this ad.AdAds by Money disclaimer

Your dream house is close by

Reap the benefits of current Mortgage Rates. Start with AmeriSave Mortgage by clicking in your state today.

HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHLatest HampshireVTVermontLatest YorkNJLatest JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoLatest MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas

View Rates

Not all products are eligible. All loans are subject to credit approval. Additional terms & conditions apply.

What happens when home values drop?

Falling home values are scary, but “that doesn’t necessarily mean doom and gloom,” Douglas Elliman real estate broker Jessica Peters recently told Money.

There are some real risks, after all: Some sellers could find yourself taking a loss, depending on once they purchased their home, and residential equity borrowers won’t give you the option to borrow as much. Recent buyers must also be wary of going underwater on their mortgage.

The upside for potential buyers is that falling home values means lower prices — assuming they will afford to purchase at today’s rates.

However the decrease in home prices could also be a short-lived trend. Many experts imagine mortgage rates will come down this yr, and it’s possible that the housing market will get a little bit more competitive if that happens.

“I expect recent listings to stay scarce as homeowners hold onto low rates of interest while the pool of determined buyers circle the few homes which might be available,” Seattle Redfin agent Shoshana Godwin said in a recent news release.

Ads by Money. We could also be compensated in case you click this ad.AdAds by Money disclaimer

Seeking to turn out to be a house owner? AmeriSave Mortgage may help!

With Mortgage Rates on the rise, the earlier you think about your next move, the higher. Start today by clicking below.

View Rates

Not all products are eligible. All loans are subject to credit approval. Additional terms & conditions apply.

More from Money:

Here’s How Low Mortgage Rates Could Drop in 2023, In keeping with One Expert

Your Home May Lose Value in 2023. Should You Worry?

9 Best Home Equity Loans of January 2023

Leave a Comment

Copyright © 2024. All Rights Reserved. Finapress | Flytonic Theme by Flytonic.