Home Prices Drop in July as Demand for Housing Cools

Abstract

Shauna Pendelton, a Boise-based Redfin agent, said, "Individual home sellers and builders were both quick to drop their prices early this summer, mostly because they had unrealistic expectations of both price and timelines." She added that sellers overpriced their properties because of similar properties, or real estate comps, selling at higher prices recently. According to the Redfin agent, "If someone is selling a nice home in a desirable neighborhood, they shouldn't need to drop their price." Affordable Housing Is Once Again Within Reach Last week, we reported about the National Association of Home Builders list of the locations with the most affordable housing. Coming off the heels of NAHB's list of most affordable real estate markets, Redfin gives us the good news that at least 97 major markets are experiencing home price drops. Because home prices are going down in a lot of markets across the country, people can now invest with greater confidence knowing that they can find affordable investment properties that offer a higher return on their investment. The value of a home inevitably goes up over the years, but it's always a welcome break for investors to be in a market where home prices are within their reach. The more affordable home prices today will likely get them better dollar-for-dollar returns in the long term, especially when the rental market picks up. Top 5 Metro Areas With the Largest Drop in Home Prices in July 2022 For real estate investors looking to take advantage of the downward trend in July home prices, here is Mashvisor's data for Redfin's top five markets with the most significant price drops: 1.