According to Forbes, more cities are expected to see home prices decline by the end of 2023 as the market shifts to favor buyers instead of sellers. The recently released Knock Buyer-Seller Market Index found home prices in 98 of the 100 largest housing markets had lower prices than last spring, with only Providence, RI, and Salisbury, Md., seeing steady home prices throughout 2022. By September 2023, home prices in 42 major markets are expected to fall further than their 2022 record highs, with Bridgeport, Conn., seeing the largest price drop (-7.8%) and Springfield, Mo., leading the Midwest with an expected price decrease of 3.9%.
In a sign of the current market where high home prices and rising interest rates have pushed many buyers to the sidelines, just over 1.8 million homes had traded hands across the nation’s largest 100 housing markets through the first nine months of 2022 — less than during the same time frame in each of the past four years. Although still low, the supply of homes for sale has grown steadily throughout 2022 as median days on market increased to 20 in September – up by one full week from a year ago.
Knock co-founder and CEO Sean Black said that based on the findings, the shift to a more balanced market is still in its early stages. “We expect that this much-needed reset will persist through much of 2023, and although prices will again begin to rebound they likely won’t return to their peaks for the foreseeable future,” he said.
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