If you’ve been waiting for a good opportunity to buy, now might be the time for you since the housing market is beginning to cool.
Researchers say that these 5 major cities are headed for a price cut. We’ll be referencing this article from Yahoo Finance.
Boise became one of the least affordable cities to buy during the pandemic due to an increase in demand. Housing prices reached 72% above the average middle-income salary.
Now that the market is cooling, Boise has reversed completely. And it’s a market that is anticipated to decline in price in 2022.
Housing prices have gone up 75% since February 2020 in Austin. Austin saw some of the biggest growth in inventory, according to Redfin. The number of homes for sale rose by 27% in June, compared with last year.
As more homes come on the market, price cuts for listing are on the rise.
According to Redfin, investor purchases in Nashville were down nearly 17% in the first quarter of 2022. Housing prices have gone up 56% since the beginning of the pandemic.
Since interest rates began to rise, it’s become clear how unsustainable those prices had become.
Home prices in Phoenix went up 25% over the past year, with 45% of those transactions being investor transactions.
“Markets that depend on investment activities do well on the upside, but they can turn quickly. That’s why we got some pretty negative forecasts, especially on a relative basis to more kind of slow, steady markets.”
Sacramento is a city that saw a surge in population over the past two years and inventory is growing. Investor purchases in Sacramento were down nearly 21% in the first quarter of 2022.