Home prices are falling in the West and rising in the East
Americans looking to buy a home in a much cheaper market may want to try their luck west of Texas, according to a property analysis released this week.
Home prices fell last month in 12 metropolitan areas in West Texas, including 10.5% in San Jose, California. Mortgage analytics firm Black Knight reports 10.3% in San Francisco and 7.5% in Seattle. Meanwhile, prices in 40 major cities in western Colorado rose in the same month, with Miami up 12%, Orlando, Florida up 9.3%, and Buffalo, New York up 8.3%.
The ups and downs in prices are a result of the Federal Reserve’s ongoing fight against inflation, said Holden Lewis, a home and mortgage expert at NerdWallet.
“House prices were very high in the West when they started, and when the Federal Reserve cut interest rates, pandemic Lewis told CBS News: “It allowed people to really raise the price of their homes,” he said. Buying the house kept the price a bit more level. ”
Month-long battle with the Federal Reserve soaring inflation As mortgage rates skyrocketed, the cost of borrowing for home-seekers rose. Additionally, demand for homes surged in his 2022, and builders couldn’t keep up with the pace, pushing existing home prices even higher.
Enthusiastic buyers, less enthusiastic sellers
The spring home buying season is in full swing nationwide. Realtors expect home seekers to step up their efforts to buy a home in the coming months. On the other hand, homeowners are expected to be hesitant to list their properties due to the possibility of signing new mortgages at high interest rates.
According to the latest S&P CoreLogic Case-Shiller Index, house prices rose 3.8% year-over-year in January. reportMedian home prices in the country reached $363,000 in February, according to to the National Association of Realtors. Economists say rising mortgage rates in the coming months will have a big bearing on whether house prices will drop below that figure anytime soon.
“Rates are likely to stay high for the foreseeable future, even if they don’t rise further,” said Kieran Clancy, senior U.S. economist at Pantheon Macroeconomics. “Therefore, any improvement in affordability must come from lower prices.”
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Americans looking to buy a home in a much cheaper market may want to try their luck west of Texas, according to a property analysis released this week. Home prices fell last month in 12 metropolitan areas in West Texas, including 10.5% in San Jose, California. Mortgage analytics firm Black Knight reports 10.3% in San Francisco and 7.5% in Seattle. Meanwhile, prices in 40 major cities in western Colorado rose in the same month, with Miami up 12%, Orlando, Florida up 9.3%, and Buffalo, New York up 8.3%. The ups and downs in prices are a result of the Federal Reserve’s ongoing fight against inflation, said Holden Lewis, a home and mortgage expert at NerdWallet.
“House prices were very high in the West when they started, and when the Federal Reserve cut interest rates, pandemic Lewis told CBS News: “It allowed people to really raise the price of their homes,” he said. Buying the house kept the price a bit more level. ”
Cooling of housing market during prime season
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Month-long battle with the Federal Reserve soaring inflation As mortgage rates skyrocketed, the cost of borrowing for home-seekers rose. Additionally, demand for homes surged in his 2022, and builders couldn’t keep up with the pace, pushing existing home prices even higher.
Enthusiastic buyers, less enthusiastic sellersThe spring home buying season is in full swing nationwide. Realtors expect home seekers to step up their efforts to buy a home in the coming months. On the other hand, homeowners are expected to be hesitant to list their properties due to the possibility of signing new mortgages at high interest rates.According to the latest S&P CoreLogic Case-Shiller Index, house prices rose 3.8% year-over-year in January. reportMedian home prices in the country reached $363,000 in February, according to to the National Association of Realtors. Economists say rising mortgage rates in the coming months will have a big bearing on whether house prices will drop below that figure anytime soon.“Rates are likely to stay high for the foreseeable future, even if they don’t rise further,” said Kieran Clancy, senior U.S. economist at Pantheon Macroeconomics. “Therefore, any improvement in affordability must come from lower prices.”
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Christopher J. Brooks
Christopher J. Brooks is a reporter for CBS Moneywatch, covering business, consumer and financial topics ranging from economic inequality and housing to bankruptcies and the sports business.
https://www.cbsnews.com/news/home-price-regional-breakdown-mortgage-housing/ Home prices are falling in the West and rising in the East