Home prices have risen dramatically during the pandemic, and markets in Mountain West have seen some of the biggest increases in the country. But now, some towns in the region could see those prices come down to earth.
Real estate analysis firm CoreLogic recently published a report on house prices in the United States over the past year. It shows that between August 2021 and August 2022, prices jumped 15-20% in Nevada and Arizona, while the rest of the Mountain West saw increases more in line with the national average of 13.5%.
But that 13.5% is actually the lowest year-over-year rate of appreciation since April 2021, indicating a cooling. CoreLogic sees the Boise and Reno markets as having some of the highest chances of falling prices over the next year.
Many would appreciate a chill as an affordability crisis affects much of the region, and while this may help homebuyers in general, for those in need of a mortgage there are other hurdles. overcome.
“Over the past few months, the Fed has been raising interest rates,” said Megan Lawson, economist at Headwaters Economics. “And that’s slowing down new home purchases because borrowing costs are just more expensive now.”
She predicts the housing market will slow in the Mountain West area, but not dramatically.
“I think a lot of that is because of the strength of our economy, the high quality of life in the communities, and the fact that there’s such pent-up demand for housing,” Lawson said.
Lawson also pointed out that while prices may drop somewhat, those prices are historically higher than ever.
“They’re just not increasing at these really mind-boggling rates that have been in the headlines for a while,” she said.
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