If you’re looking to buy or sell a house right now, you’ll undoubtedly notice that times have changed since what the housing economy was like a year or 18 months ago. What you are experiencing is called a home price correction. And it’s the second-worst in this county since World War II.
What’s fueling it is uncertainty. Mitch Roschelle, the founding partner of Macro Trends Advisors, told Fox News this.
“A couple of things are going to cause it to turn in the opposite direction, meaning home prices are going up. One is certainty. And when you don’t know if interest rates are going to go up or not. I think that is what is driving many people away from buying because they just don’t know if rates are going to be cheaper in two months, and they’re just going to wait.”
“And the other thing is uneasiness regarding the economy. And I think the shoe to drop there would be if we start seeing layoffs, and we start seeing unemployment starting to rise, I think that could be something that causes a leg down in the housing market in a big way.”
One thing for sure is that the people with the power right now are buyers. It’s a buyer’s market if you can handle the interest payments being what they are. During the pandemic, when sellers were in complete control, there was a scarcity of inventory of houses. That has flipped.
Prices had gotten entirely out of whack because of the pandemic as well. Fortune says average home prices in October 2022 are up 38% since March 2020. For this correction to be compl
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