Author: Mike Roc
In specific locations, property prices may be starting to fall. Homebuyers have seen home prices rise over the past few years, but some areas are now seeing a slight decline in prices. As house sales have decreased considerably in recent months, home price rise has reduced over time in most sectors, and there are even price modifications in specific locations.
However, some counties are enjoying double-digit price cuts, according to the U.S. Affordability Report issued by a real estate analytics company.
Countries with residents of at least one million people where average prices have fallen the most between the second and third quarters of 2022 are:
- Alameda County (Oakland, California), down by 11%;
- Travis County (Austin, Texas), which has decreased by 9%;
- Santa Clara County (San Jose, California) has dropped by 8%.
- Contra Costa County (outside of Oakland) is down by 7%;
- Fairfax County, Virginia (just outside Washington, D.C.), is down by 7%.
Other evidence points to a cooling in the housing market. According to Fortune, 98 of the 148 extensive regional housing areas studied have seen home values decrease from their 2022 high, according to John Burns Real Estate Research data. “We expect that you will see—and we are seeing it just now—home prices dropping even while availability rates are not going higher,” said Rick Palacios Jr., head of research at John Burns Real Estate Consulting.
Housing remains unavailable for purchase.
While price cuts in several regions, the property remains expensive for most people. In some counties in the U.S., 99% of median-priced houses and condominiums remained less inexpensive in the third quarter of 2022 compared to historical norms.
Spike in mortgage rates
There’s also the problem of mortgage rates. What would happen if interest rates reached their highest level since 2007? For now, it’s sensible for homebuyers to brace for the likelihood of increased mortgage rates, especially when evaluating their house-buying budget.
How can I get a lower mortgage rate?
Purchasing a home is the most expensive purchase most people will ever make. And if you aren’t aware of the different financing choices, it might cost you significantly more than expected.
Managing your housing costs starts with your bank loan and the rate of interest that comes with it. The lower your mortgage rate may be pushed, the less money you’ll spend throughout the loan.
Here are some recommendations to lower your mortgage rate
- Have a good credit rating (A good score indicates that you will likely pay back your debt. A low score suggests you’re a risky bet, which means you’ll pay more in interest)
- Possess a long and steady job history (Mortgage companies want to see a stable and lengthy job history in addition to a solid credit score)
- Look around for the best deal (Spend some time comparing internet banks to national banks and regional credit unions)
- Request a higher rate from your bank or credit union (If you are a good client with a current mortgage, your mortgage company should do everything possible to maintain your business)
- Make your loan shorter (For a lower mortgage rate, choose a 10-year or 15-year mortgage. A lower interest rate indicates your loan debt will decrease sooner, and your house value will begin to grow)
The message is that property purchasers should not expect a significant drop while prices may be down.
An expert mentioned: “although housing prices have dropped somewhat quarter over quarter, they are still more increased than they were a year ago, and loan rates have risen.”
Many possible homebuyers cannot purchase the property they desire because they may not be eligible for the mortgage they require.