{"id":1753756,"date":"2022-11-28T10:52:14","date_gmt":"2022-11-28T15:52:14","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1753756"},"modified":"2022-11-28T11:33:33","modified_gmt":"2022-11-28T16:33:33","slug":"some-experts-say-homeowners-should-brace-for-property-price-drop","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/some-experts-say-homeowners-should-brace-for-property-price-drop\/","title":{"rendered":"Some Experts Say Homeowners Should Brace for Property Price Drop"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsome-experts-say-homeowners-should-brace-for-property-price-drop%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1753756&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Real estate prices have declined over the past several months, but there could be much more to come, data and some experts indicate.<\/p>\n<p>The median home price has dropped by about 7 percent since its peak in June. It is still up by about 6 percent since October last year and more than 35 percent up since early 2020, according to data from Zillow, a listing site.<\/p>\n<p>Other market metrics have recently dropped far more precipitously though. Sales volume, for instance, is down more than 24 percent since last year. Construction started on less than 120,000 private housing units in October, down from more than 150,000 in April, according to Census Bureau\u2019s seasonally adjusted data (<a href=\"https:\/\/www.census.gov\/construction\/nrc\/pdf\/newresconst.pdf\" target=\"_blank\" rel=\"noopener\">pdf<\/a>). Prices of lumber, the most common residential construction material in America, dropped by nearly 70 percent since February and are now roughly at the early 2020 level.<\/p>\n<p>The <a href=\"https:\/\/www.theepochtimes.com\/t-housing-market\">housing market<\/a> has been pummeled by the Federal Reserve\u2019s lifting of interest rates this year, which have boosted mortgage rates from less than 3 percent in September last year to more than 7 percent in early November. The rates have since eased to some 6.5 percent.<\/p>\n<p>This indicates that the market has yet to reach its bottom.<\/p>\n<p>\u201cWe expect a drop of 15-to-20% over the next year, in order to restore the pre-Covid price-to-income ratio,\u201d wrote Ian Shepherdson, chief economist at the Pantheon Macroeconomics in a note last week.<\/p>\n<p>Fannie Mae\u2019s Economic and Strategic Research (ESR) Group expects home prices to hit a low point in the second quarter of next year with a recovery the year after.<\/p>\n<p>One major factor is that 80 percent of mortgage holders have locked in rates of at least two percent lower than the current rate which makes them unwilling to look for a new house, the ESR <a href=\"https:\/\/www.fanniemae.com\/newsroom\/fannie-mae-news\/economy-still-expected-enter-and-exit-modest-recession-2023\" target=\"_blank\" rel=\"noopener\">said<\/a> in a recent forecast.<\/p>\n<p>\u201cThe economy continues to slide toward a modest recession, which we anticipate will begin in the new year, with housing leading the slowdown,\u201d said Doug Duncan, chief economist at Fannie Mae.<\/p>\n<p>\u201cHigher interest rates have ignited the typical reduction in residential fixed investment, which historically has led into either an economic slowdown or recession. From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession.\u201d<\/p>\n<p>Dropping house prices are bad news for those who bought theirs during the record-high prices of the past few years. They can easily find their mortgages underwater unless they put enough cash down.<\/p>\n<p>Meanwhile, prospective homebuyers still don\u2019t have much to look forward to because even at lower asking prices, houses will remain expensive when the higher mortgage rate is factored in.<\/p>\n<p>One factor keeping a bottom under the market is low inventory, currently some 36 percent below the October 2019 level.<\/p>\n<p>\u201cIt\u2019s hard to imagine a significant drop in pricing. Inventory is just too low,\u201d commented Jonathan Miller, president and chief executive of Miller Samuel appraiser, in a recent Bloomberg <a href=\"https:\/\/www.youtube.com\/watch?v=S8AvUudMd0A\" target=\"_blank\" rel=\"noopener\">interview<\/a>.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-petr-svab\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/15f57d553829f93e_ttl7dayFDN_WEB_PetrSvab_v2-1.jpg\" alt=\"Petr Svab\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Petr Svab is a reporter covering New York. Previously, he covered national topics including politics, economy, education, and law enforcement.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Real estate prices have declined over the past several months, but there could be much more to come, data and some experts indicate.The median home price has dropped by about<\/p>\n","protected":false},"author":1,"featured_media":1555579,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1753756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1753756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1753756"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1753756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1555579"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1753756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1753756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1753756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}