5 Housing Market “Headwinds” That Could Force Home Prices to Drop

5 Housing Market “Headwinds” That Could Force Home Prices to Drop

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The housing market is still holding strong, but home prices could start to fall in late 2023 and into 2024, thanks to a few “headwinds” on the horizon. With mortgage rates still rising, affordability is in the garbage, and many Americans are giving up on the dream of home ownership to rent and bide their time. This lack of demand in the market could flip things on their head and finally give sellers a reason to drop their prices.

But, with record-level low housing inventory, will the drop in demand be enough to beat our even lower supply? Dave is back to go through which housing market headwinds pose the biggest threat to home prices, whether or not delinquencies and foreclosures could force more inventory onto the market, and where we can expect to be at the end of this year and early 2024.

What do you think will happen to home prices? Could they drop by the end of THIS year? Let us know in the comments below!

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Housing is Unaffordable, But Could It Actually Get Worse?
https://www.biggerpockets.com/blog/on-the-market-32?utm_source=youtube&utm_medium=description&utm_campaign=none
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Data Sources from Today’s Video:
Case-Shiller Home Price Index: https://ycharts.com/indicators/case_shiller_home_price_index_national
Mortgage Delinquencies: https://www.blackknightinc.com/wp-content/uploads/2023/09/ICE_MM_OCT2023_Report.pdf
Mortgage Purchase Index: https://tradingeconomics.com/united-states/mba-purchase-index
The Magic Mortgage Rate: https://jbrec.com/insights/5-5-is-the-magic-mortgage-rate/
US Fixed Housing Affordability Index: https://ycharts.com/indicators/us_fixed_affordability_index
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00:00 Housing Market Hurdles
01:22 Homeowners Are “Locked-In”
03:31 Delinquencies and Foreclosures
04:10 Mortgage Demand Drops
06:16 5 Home Price Headwinds
07:58 Q4 Could Get Rough


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