Despite the rates having just dropped from their peak in week 44, purchase volume in week 48 continued to trend lower (down 48% from 2021).
Due to limited purchase volume, HPA reductions, drastically higher rates, and a cumulative 39% increase in HPA since January 2020, the seller’s market that has been in place for 10 years is beginning to show its age.
In November 2022, December 2022, and the first half of January 2023, the Y-o-Y HPA is expected to moderate to 7%, 5%, and 3%, respectively.
The hardest-hit metros are those with lower affordability; Sacramento, San Francisco, Salt Lake City, and San Jose in the West are already experiencing y-o-y HPA reductions.
Price reductions will eventually reach the low end of some FHA markets and in cities with slowing or stagnant job growth.
- Week 50 in 2022: Housing Finance Watch and Inflation Watch | American Enterprise Institute
- Check all news and articles from the latest Business news updates.