The current state of the U.S. economy and housing market is a cause for concern for many households across the country. Rising inflation rates and increased financial pressures have led to reduced savings and higher credit card debt for many families. The declining housing market, with home prices falling and fewer potential homebuyers, is also contributing to economic uncertainty.
According to data from Redfin, the value of the housing market has shrunk more than the 2008 levels. Homeowners have lost a staggering $2.3 trillion in market value since June of last year, due to higher interest rates and a decrease in demand for housing. The U.S. home purchase applications have fallen to a 28-year low, indicating that the market may continue to weaken in the future.
The S&P Case-Shiller Home Price Index has also shown a decline in home prices, with prices falling in all 20 cities in December. This decline in home prices may signal broader economic weaknesses and even a potential recession. As Clancy predicts, home prices may fall about another 20% from the peak to the end of this year, meaning the median price could tumble another 10% to about $346,000 nationwide by the end of 2023.
For the housing market in Boise, the median sales price in the metro area has already decreased by 11% and is currently headed down. In order to get back to the 2020 prices, the median sales price needs to drop about 10% more this year. The trend of rising interest rates is also causing concern, with a 1% increase in mortgage rates taking about 10% of a buyer’s purchasing power away.
Overall, the current state of the U.S. economy and housing market is uncertain and may continue to weaken in the future. It’s important for households to be aware of these trends and plan accordingly to avoid financial stress and ensure financial stability in the long term.
If you’re looking to buy or sell real estate in Idaho, follow our updates. 📲 Reach out anytime. Call, text, or comment, and we will be sure to respond.
Ready to buy? https://forms.gle/RHP6tFHUZMZydnLK6 Good News Realty Group LLC, located in Boise Idaho.
📲 Call Direct at 208-800-9073
📲 Email: firstname.lastname@example.org