By Andrew Augustyniak | People’s Mortgage
The housing market is not crashing but is definitely feeling the burn.
After two frenzied years, home buying is starting to cool off as mortgage rates have reached pre-pandemic levels. Now that we are shifting into more of a buyers market, some experts are calling this a “housing recession.”
U.S home values dropped by 0.1% in July compared to June, a new report from Zillow shows. While deceleration in home-price growth is typical for this time of year, the small decline is the first monthly dip since 2012.
Given the recent dip in July, forecasts have been adjusted for the growth in home values to 21.4% through the end of August 2022. The current rate of growth is hovering around 16%.
Investors are also seeing far more options, with inventory gradually rising and the pendulum slowly swinging in their direction. As sellers are finding themselves with fewer offers and having to provide more concessions, a window is opening for investors to get in and find a great deal!
In the Phoenix market alone, we are finding that 28.8% of the current homes on the market have been met with a price cut. With these kinds of cuts, buyers and investors especially are able to find opportunities that didn’t exist even a couple of short months ago.
This could be the news investors are looking for. In July, the annual home price growth rate saw “the greatest single-month slowdown on record since at least the early 1970s,” according to mortgage data and analytics company Black Knight. What’s more, this was coupled with the “largest single-month influx of for-sale inventory in 12 years,” the firm noted in a release about its latest Mortgage Monitor report on August 1.