Zillow Survey: 5 Reasons We're Seeing Falling Housing Market Prices

We all know the story. The pandemic hit the world, leading to lower mortgage rates and a greater desire for people to have their own space.

As a result, we all rushed to buy properties, causing one of the tightest property markets of recent years.

Some figures suggest as many people regret their decision to buy, feeling they acted hastily based on pressure. Could it be this be an ominous signs of a crash in housing market prices?

5 Reasons For Falling Housing Market Prices

A recent Zillow survey showed that 75% of recent housing market buyers regretted their decision to purchase a property during the pandemic. Why?

1) What Goes Up Must Come Down

The top reasons were buyers felt they didn’t have enough time to weigh up their priorities and options. Realizing they chose the wrong location or ended up with too long a commute, or finding they didn’t take enough time to go with the right agent or carry out a home inspection.



Investing in Real Estate or Buying a New Home?

Learn About Emerging Trends In: Mortgage rates  Buyer demand Home values Real estate investor trends

2) Lower Supply of New Housing Market Buyers

Let’s start with perhaps the most obvious reason for a link between the house-buying frenzy and falling prices. Many people chose to buy houses during the pandemic means these people are no longer searching for properties.

As a result, surely there will be a lower number of people searching for homes, meaning demand will return to a typical point, and prices will either stabilize or drop?

The number of buyers is also likely to be low for other reasons. Real estate investors may be reluctant to get involved in the market amid the current uncertainty. At the same time, the cost of living crises and high mortgage rates make it challenging for first-time buyers to enter.

Swipe up now to read the full post!