Home prices fell for the first time in 3 years last month – and it was the biggest decline since 2011

[1srelluc]

Home prices declined 0.77% from June to July, the first monthly fall in nearly three years, according to Black Knight, a mortgage software, data and analytics firm.

While the drop may seem small, it is the largest single-month decline in prices since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% decline in July 2010, during the Great Recession.

The sharp and fast rise in mortgage rates this year caused an already pricey housing market to become even less affordable. Home prices rose sharply during the first years of the Covid pandemic because demand was incredibly strong, supply historically weak and mortgage rates set more than a dozen record lows.

Home prices fell for the first time in 3 years last month – and it was the biggest decline since 2011

Not in my AO but I suspect more desirable locations may experience some very small reductions but long term are good places to put money. Shitty locations whose values have skyrocketed because the “real estate market is hot right now” will suffer more.....Nobody really wants a "hood" shit-box in CA.

 

[JustAGuy1]

We sold ours just in time.

 

[1srelluc]

We sold ours just in time.

Well truth be told buying a home five years ago for 250K and missing out on 0.77% selling it at 450K now is not missing out on much.

 

[Harpy Eagle]

Good news for those needing a home.

Since Jan of 2015 the median home price is up 98.4%.

During that time overall inflation is only up 26.8%

 

[Vastator]

The housing market is waaaay overheated. I'm looking forward to a bubble bursting. Though I see the concern for those whose properties are still owned by the banks.

 

[Harpy Eagle]

The housing market is waaaay overheated. I'm looking forward to a bubble bursting. Though I see the concern for those whose properties are still owned by the banks.

If they are not looking to sell it I really do not see the issue.

And if they bought it more than 2 years ago they are still up an average of 40% on their home value.

 

[Vastator]

If they are not looking to sell it I really do not see the issue.

And if they bought it more than 2 years ago they are still up an average of 40% on their home value.

For them, and me no biggie. But for the speculators...

 

[Harpy Eagle]

For them, and me no biggie. But for the speculators...

Not sure anyone group could be less of a concern for me

 

[Vastator]

Not sure anyone group could be less of a concern for me

While not "concerned"; I am quite interested. I'm looking forward to the masses of foreclosures, and defaults. Prime buying opportunities.

 

[Harpy Eagle]

While not "concerned"; I am quite interested. I'm looking forward to the masses of foreclosures, and defaults. Prime buying opportunities.

Should not be as big an issue this time around as this recession so far has not hurt employment at all. We have more open jobs than any point in our history. Thus no reason to be laying off/firing people.

 

[Vastator]

Should not be as big an issue this time around as this recession so far has not hurt employment at all. We have more open jobs than any point in our history. Thus no reason to be laying off/firing people.

Mortgage Delinquencies Are on the Rise According to Banks

With mortgage delinquencies on the rise, how is the real estate market doing today? How will this increase in delinquencies affect real estate investors?

www.mashvisor.com

 

[Harpy Eagle]

Mortgage Delinquencies Are on the Rise According to Banks

With mortgage delinquencies on the rise, how is the real estate market doing today? How will this increase in delinquencies affect real estate investors?

www.mashvisor.com

Yeah, that was sort of expected after almost 2 years of foreclosures not being allowed. People got behind when they did not have to pay and many will just skip out and not have to pay the back payments.

 

[Dekster]

Home prices declined 0.77% from June to July, the first monthly fall in nearly three years, according to Black Knight, a mortgage software, data and analytics firm.

While the drop may seem small, it is the largest single-month decline in prices since January 2011. It is also the second-worst July performance dating back to 1991, behind the 0.9% decline in July 2010, during the Great Recession.

The sharp and fast rise in mortgage rates this year caused an already pricey housing market to become even less affordable. Home prices rose sharply during the first years of the Covid pandemic because demand was incredibly strong, supply historically weak and mortgage rates set more than a dozen record lows.

Home prices fell for the first time in 3 years last month – and it was the biggest decline since 2011

Not in my AO but I suspect more desirable locations may experience some very small reductions but long term are good places to put money. Shitty locations whose values have skyrocketed because the “real estate market is hot right now” will suffer more.....Nobody really wants a "hood" shit-box in CA.

We'll see but I am not surprised. When I was recording a judgment release yesterday afternoon, the recording clerk said it has been pretty dead the last 3 weeks as far as volume but prices were still coming in well above assessed values.

 

[iamwhatiseem]

There are going to be so many people who will be under water with their mortgage - this will be a repeat of 2008, on a smaller scale.

Example... our house.
Sits on 1/3 of an acre on a corner lot. Paved circle drive way.
The property also includes a very well built, in great shape a small building that was originally built in 1962 as a 2 chair beauty salon.
All of the equipment is long gone. So now it is a well maintained large room with a small bathroom.
Both that building and the house are limestone on all 4 sides.
The house has 5 bedrooms and 3 full bathrooms. The walk out basement is fully finished with it's own full size kitchen, so yes the house has two full size kitchens. We bought the home in 2019.

The home that sits next door to us sold 6 weeks ago just at the very beginning when prices started to fall, but not yet.
It has a fairly small yard, no paved driveway. It is 3 bedrooms, 1 1/2 baths. Unfinished partial basement. The house, like ours, is in good shape. The buyer paid only $8000 less than we paid for ours.
These people got screwed badly. It may be well over a decade before it is worth NEAR what they paid for it. If anything happens to them in the next 5 years or so... they will have to declare bankruptcy 100%.

 

[iamwhatiseem]

Curious.. Golfing Gator ... why the laughter at the post above?

 

[Harpy Eagle]

Curious.. Golfing Gator ... why the laughter at the post above?

This part.

There are going to be so many people who will be under water with their mortgage - this will be a repeat of 2008, on a smaller scale.

 

[iamwhatiseem]

This part.

There are going to be so many people who will be under water with their mortgage - this will be a repeat of 2008, on a smaller scale.

??
Why is that funny?
You don't think people that bought homes this year are going to be underwater?
In 1 year my home increased in value by 37%. Most people's homes increased by that much. That is insanity.
Monumentally unsustainable. Stark fall in home prices was inevitable. Had to happen.
All of those people who bought homes this year are screwed. Big time.
It is not just possible, but plausible that home values may fall 25% or more in the next year.
So if you bought a home for $350,000... it will only be worth $260,000. You could owe $90,000 more than it is worth, They will be trapped. Unable to move or relocate. Like 2008, just of course a much smaller scale.

 

[Harpy Eagle]

??
Why is that funny?
You don't think people that bought homes this year are going to be underwater?
In 1 year my home increased in value by 37%. Most people's homes increased by that much. That is insanity.
Monumentally unsustainable. Stark fall in home prices was inevitable. Had to happen.
All of those people who bought homes this year are screwed. Big time.
It is not just possible, but plausible that home values may fall 25% or more in the next year.
So if you bought a home for $350,000... it will only be worth $260,000. You could owe $90,000 more than it is worth, They will be trapped. Unable to move or relocate. Like 2008, just of course a much smaller scale.

I do not think there will be a "Stark fall in home prices" due to the fact there is a shortages in many places.

 

[iamwhatiseem]

I do not think there will be a "Stark fall in home prices" due to the fact there is a shortages in many places.

These 183 housing markets could soon see home prices fall 20%, Moody's says

Moody's Analytics unveils its downgraded U.S. home price forecast.

fortune.com

Like I said - you can't have a market where home prices increased between 25% - 40% and not have a fall follow it.
It is an insane market

 

[Harpy Eagle]

These 183 housing markets could soon see home prices fall 20%, Moody's says

Moody's Analytics unveils its downgraded U.S. home price forecast.

fortune.com

Like I said - you can't have a market where home prices increased between 25% - 40% and not have a fall follow it.
It is an insane market

Well, I guess we will find out soon who is correct.