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The real estate market shows signs of decline

On Behalf of | Dec 29, 2022 | Residential Real Estate |

For the past two years, the price of homes in the United States has generally gone up.  In some areas, this has just been a small increase.  In many, it has been a dramatic increase, with some homes doubling or even tripling in value.

However, new reports from this fall show that the market may be turning at last.  Home prices could have hit their peak and may be starting to fall back down once more.  Of course, it is impossible to know if this trend will continue until more evidence has been gathered, but the signs are there.  The market is beginning to change, and homes may become more affordable in the future.

Will it be like 2009?

The last time there was a major decline in home values was in 2008 and 2009.  To a large degree, that was because the housing bubble burst, the economy entered a recession and there were a lot of short sales and foreclosures.  This meant that sellers were just trying to get something for their homes, or that lenders were reclaiming those homes and attempting to sell them.  Either way, these factors worked together to reduce prices significantly because homes were selling at a loss.

Even if the real estate values drop this year, many experts do not think that they are going to act in a similar fashion.  Perhaps they will reduce in value to what they were in 2019, but we probably won’t see a major crash like we did in 2009.

If you’re a first-time home buyer in this volatile market, be sure you know about all the steps you’ll need to take.

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