by: Arsenio Toledo
(Natural News) Home prices across the US have fallen to historic lows, as 31 percent of the nation saw their property values decline dramatically through the first quarter of 2023.
In the course of the peak of the housing boom, home prices surged in practically every corner of the country. Now, the housing market is split down the center – with prices in most Western states dropping while those in lots of parts of the Midwest, South and Northeast are still on the rise. (Related: Existing home prices within the US fall for the primary time in 11 years.)
California and the Mountain West saw a number of the biggest drops in housing prices. San Francisco alone posted a 14.5 percent drop in median single-family existing-home sale prices in comparison with a 12 months earlier. That is followed by median prices in San Jose, which dropped by 13.7 percent.
Austin, Texas and Boise, Idaho, which experienced similar housing booms through the Wuhan coronavirus (COVID-19) pandemic, saw housing prices decline by greater than 10 percent each.
That is all in response to recent research released by the National Association of Realtors (NAR), which found that much of the decline in housing prices got here from the country’s largest metro areas, fueled by a mass exodus of individuals running from Democrat-controlled, crime-ridden and high-tax cities.
“Generally speaking, home prices are lower in expensive markets and better in reasonably priced markets, implying greater mortgage rate sensitivity for high-priced homes,” said NAR Chief Economist Lawrence Yun.
The NAR added that the decline was posted in 31 percent of the country’s 221 metro areas tracked by NAR, and that this was the best percentage decline posted in 11 years. The remaining roughly 69 percent of metro markets saw single-family existing-home sales climb, with about one in 14 markets – or roughly seven percent – posting double-digit price increases.
Mortgage rates in metro areas also declining
Together with the decline in housing prices, the variety of homes being sold nationwide has fallen over the past 12 months, as Federal Reserve-induced higher mortgage rates have weighed on home buying demand, and the availability of obtainable homes can be very limited. But this induced price increase appears to be abating, albeit barely.
In the primary quarter, mortgage rates dipped barely in comparison with the fourth quarter of 2022, when mortgage rates surged to over seven percent. The monthly mortgage for the primary quarter for a typical existing single-family home with a 20 percent down payment was $1,859. This represents a 5.5 percent decrease from the common of $1,967 monthly mortgage within the previous quarter. But this can be still a large jump of 33.1 percent – or an extra $462 – from a 12 months ago.
Families in the primary quarter also typically spent around 24.5 percent of their monthly income on mortgage payments, down barely from the 26.2 percent of monthly income within the previous quarter, but still higher than the 19.5 percent through the first quarter of 2022.
This has made single-family existing homes attractive for some first-time home buyers, including Kris Vierhaus and Travis Carter, who bought a three-bedroom in San Mateo, California, in San Francisco’s South Bay region. They first viewed this house back in December but thought it was overpriced. They returned in February, when the home was still in the marketplace, put in a proposal and purchased it for about 4 percent below the listing price.
“By the point we closed, it was confirmed that individuals were going to get asking [price] or below,” said Vierhaus. “The aggressive offers, or the fighting over things, was just not happening anymore.”
Learn more in regards to the collapse of the American economy at MarketCrash.news.
Watch this clip from Fox News discussing how President Joe Biden’s administration goes to punish homebuyers with good credit.
This video is from the News Clips channel on Brighteon.com.
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