The past couple of years have proved to be a great time for home sellers, with property prices jumping by almost 40% since the start of the pandemic. But those heady days are likely over, with Wall Street economists predicting that the average home price could either"stall completely" or even fall as a housing correction takes hold.
Flat to declining home sale prices could provide a breather for homebuyers, who continue to face sharplywhich have added to the cost of purchasing a home. And because their incomes aren't keeping up with the double whammy of higher borrowing costs and home prices, more buyers are being pushed to the sidelines.
Homes in Charlotte, North Carolina, are overvalued by 66%, while those in Austin, Texas, are 61% overvalued, according to Moody's. Boise, Idaho, which drew people who relocated from CaliforniaThere could be more than affordability issues at play, according to Goldman analysts. For instance, part of the surge in demand for housing was tied to the pandemic, with people seeking more space during the lockdown.
Just in time to screw the lil guy!