Home prices are falling for the first time since 2012.
Yes, home prices have started to decline nationally for the first time in over a decade, marking a notable shift in the U.S. housing market.
Key Points:
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Price Drops: According to recent data from CoreLogic and Redfin, home prices in many U.S. metro areas have begun to decrease year-over-year, especially in high-cost cities like San Francisco, Austin, Phoenix, and Seattle. This is the first consistent national downturn since the housing market recovery began post-2012.
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Why It's Happening:
The main causes include:-
High mortgage rates (hovering near 7%) pricing out many buyers
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Inventory buildup in some markets due to affordability concerns
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Correction in overheated pandemic-era markets that saw unsustainable growth
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Market Reactions:
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Sellers are reducing prices to attract buyers.
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Many potential homebuyers are delaying purchases in hopes that prices fall further or interest rates drop.
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Construction of new homes has slowed due to cost and buyer uncertainty.
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Long-Term Outlook:
Economists are divided. Some see this as a healthy correction, especially in cities where prices rose 30–50% during the pandemic. Others worry it could trigger broader economic impacts if home equity declines sharply and affects consumer spending.
THE BRUTAL TRUTH JUNE 2025
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