of The covid-19 pandemic has been a great year for homeownersPrices soared, boosted by record-low interest rates.this is California Compared to other states, despite having the highest average prices in the country since before 2020. According to Zillow, Prices peaked above $771,000 last JulyAmazingly for buyers, home prices have increased by an average of $210,000 since April 2018.
But California homebuyers may have a little bit of good news.of Average home prices fell last year, down 1.7% to $728,134 from April 2022.
Home price declines likely to continueThe median price of existing homes in the country fell in February for the first time in more than a decade. Prices are expected to drop 5% nationally, with most of the price drop occurring in expensive neighborhoods and having a major impact on California.
“We estimate a decline of about 5% nationally.” Rick Shalga saysExecutive Vice President, Market Intelligence, ATTOM Data.
There is a possibility that large shaking is progressing along the Pacific coast.investment bank goldman sachs clients advised in a letter in January Four US cities are experiencing a massive boom-to-bust transition that rivals the 2008 housing bubble. At that time, according to the S&P CoreLogic Case-Shiller index, home prices across the United States fell by about 27%, leading to the Great Recession.
Two of these cities are in California. A bank strategist San Jose and San Diego could lose about 25% of their value.
Fed volatility and inflation could impact home prices
these are The price cut is partly a result of rising interest rates encouraged by the Federal Reserve. Consistent rate hikes, including the addition of another set in May, will discourage borrowing money, an important aspect of buying a home, unless you’re extremely wealthy.
Fewer people are buying homes or are reluctant to make large payments knowing the repayments will be higherThis is reflected in the data Provided by Zillow This shows that more than half of California homes sold below list price last year, with sales of existing homes down 22.6%. nationally a year ago.
