Across the US, housing prices are very high.
Recent reports suggest that they could drop, which is good news for first-time homebuyers.
Some cities could see housing prices drop by 10%
Freddie Mac is a government-sponsored agency charged with keeping mortgage markets liquid. According to Freddie Mac, the US is short about 4 million homes. The shortage is a result of a ” decade of insufficient homebuilders available for new home construction.” With no expectation that demand will decrease, the limited housing supply will keep prices fairly high.
The housing bust of 2007 brought about new federal rules. The new rules ended “exotic mortgages” with adjustable loan rates that would catch borrowers off guard. Now, there is required documentaion to prove that you can afford the home.
Where will housing prices decrease?
When comparing historical trends to today’s prices of the housing market– homes seem to be overvalued in more than 400 cities and towns across the US. Just because the houses are priced well above market- value, doesn’t mean that is where the decreases will happen. Here are the top 10 cities expected to see a decrease in housing prices:
- Boise, ID– 73%
- Sherman-Denizon, TX– 60%
- Muskegon, MI– 59%
- Morristown, TN– 57%
- Homosassa Springs, FL– 57%
- Lake Havasu City-Kingman, AZ– 56%
- Kahului-Wailuku-Lahaina, HI– 55%
- Dalton, GA– 55%
- Flagstaff, AZ– 51%
- Pocatello, ID– 49%