Wealthy Living

Zillow Survey: 5 Reasons We're Seeing Falling Housing Market Prices

We all know the story. The pandemic hit the world, leading to lower mortgage rates and a greater desire for people to have their own space.

As a result, we all rushed to buy properties, causing one of the tightest property markets of recent years. But fast forward to more than two years later, and what’s happened?

Some figures suggest as many people as 75% regret their decision to buy, feeling they acted hastily based on pressure.

Reasons We Might See Falling Housing Market Prices

The average mortgage rate for a 30-year fixed-rate mortgage is now just under 6%. In contrast, average mortgage rates were hovering around the 3% mark in 2021 — quite the quick turnaround

1) What Goes Up Must Come Down

A recent Zillow survey showed that 75% of recent housing market buyers regretted their decision to purchase a property during the pandemic. Why? The top reasons were buyers felt they didn’t have enough time to weigh up their priorities and options.

Realizing they chose the wrong location or ended up with too long a commute, or finding they didn’t take enough time to go with the right agent or carry out a home inspection.

2) Lower Supply of New Housing Market Buyers

Let’s start with perhaps the most obvious reason for a link between the house-buying frenzy and falling prices. Many people chose to buy houses during the pandemic means these people are no longer searching for properties.

As a result, surely there will be a lower number of people searching for homes, meaning demand will return to a typical point, and prices will either stabilize or drop?

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