{"id":7777,"date":"2023-03-17T15:07:05","date_gmt":"2023-03-17T20:07:05","guid":{"rendered":"https:\/\/nwfl4sale.com\/house-prices-declining-but-still-up-7-7-year-to-year\/"},"modified":"2023-03-17T15:07:05","modified_gmt":"2023-03-17T20:07:05","slug":"house-prices-declining-but-still-up-7-7-year-to-year","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/house-prices-declining-but-still-up-7-7-year-to-year\/","title":{"rendered":"House Prices Declining but Still Up 7.7% Year-to-Year"},"content":{"rendered":"
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But U.S. metros aren\u2019t all the same. Of the top 10 states for price declines, 8 of 10 are in the West, as Miami, Tampa and Atlanta show the biggest price jumps.<\/span><\/span><\/p>\n<\/div>\n NEW CASTLE, Indiana \u2013 Home values in some states began to fall at the end of last year and may continue to drop, according to the latest data from the S&P CoreLogic Case-Shiller U.S. National Home Prices NSA Index, the leading measure of U.S. home prices. Nationally, prices decreased 0.6% from June to November 2022.<\/span><\/span><\/p>\n But despite a growing trend of falling prices the last few months, house prices are still up 7.7% year over year.<\/span><\/span><\/p>\n Insurify has rounded up the top 10 states with the fastest-falling home prices. To identify these states, Insurify\u2019s data scientists analyzed Zillow\u2019s seasonally adjusted housing data to see where median home values have fallen the most over the second half of 2022.<\/span><\/span><\/p>\n Overall, home prices in the Western United States fell in the latter half of 2022. Nevada led the charge, followed by Arizona, California, and Utah. Of the 10 states featured on our list, eight are in the West. Home prices in Nevada fell the most, with a 4.8% decline in prices between June and November 2022. Home prices in Massachusetts fell the least, with just a 0.1% drop in prices in the latter half of last year.<\/span><\/span><\/p>\n While housing prices in the West are falling the fastest, markets in the South and Southeast continue to be strong, with Miami, Tampa, and Atlanta showing the biggest jumps in prices.<\/span><\/span><\/p>\n The Federal Reserve announced a quarter-point increase in February 2023 and signaled further rate increases over the course of the year. Increases in interest rates typically lead to falling home prices, so you can expect home prices to drop even further as the year progresses.<\/span><\/span><\/p>\n Prospective homebuyers can expect cheaper prices, but as the Fed continues to implement interest rate hikes, they can also expect higher mortgage rates and higher home insurance rates. Still, it all comes down to specifics \u2013 you might be able to afford the higher mortgage and insurance rates if you find a good deal on a house.<\/span><\/span><\/p>\n But a good deal might be hard to find, according to Jorge DosSantos, branch manager at a Total Mortgage in the New England area.<\/span><\/span><\/p>\n \u201cRate increases kicked a lot of buyers out of qualifying, and some sellers are simply waiting because they don\u2019t want to give up the 3% rate they have currently to go into a 6% rate,\u201d DosSantos said. \u201cBut on the other hand, we have some markets still increasing because of inventory! Not enough houses on the market creates bidding wars.\u201d<\/span><\/span><\/p>\n All that to say, higher inflation rates, higher interest rates, and higher home insurance rates ahead in 2023 may prove to be hurdles for prospective homebuyers, even with falling home prices.<\/span><\/span><\/p>\n To identify the top states where home prices are falling the fastest, Insurify\u2019s data scientists analyzed Zillow\u2019s seasonally adjusted housing data to see where median home values have fallen the most over the second half of 2022.<\/span><\/span><\/p>\n 10. Massachusetts<\/strong><\/span><\/span><\/p>\n While still very much above the average cost of a house in the U.S., if you\u2019re looking to buy in New England, Massachusetts is the only state in the region with falling prices. Housing costs in Connecticut, Rhode Island, Maine, New Hampshire, and Vermont continue to climb. Rates are also slightly going up in similar-sized states, such as Virginia, Tennessee, and Indiana.<\/span><\/span><\/p>\n 9. Washington<\/strong><\/span><\/span><\/p>\n Washington isn\u2019t the only state in the Pacific Northwest with falling housing prices; the cost of homes in Oregon is dropping, too. But housing prices in states with similar population sizes to Washington \u2013 such as New Jersey, Tennessee, and Virginia \u2013 are still on the rise. Home insurance costs in Washington are on the rise too, with a whopping 17% jump in insurance rates between 2021 and 2022.<\/span><\/span><\/p>\n 8. Oregon<\/strong><\/span><\/span><\/p>\n States with similar-sized populations to Oregon, like Connecticut, Kentucky, and Louisiana, are still experiencing rising rates.<\/span><\/span><\/p>\n If you\u2019re house-hunting in Oregon, keep in mind that while house prices have come down, insurance prices rose 11% in just one year. In 2021, the average cost of insurance was $85 per month, but increased to $94 in 2022.<\/span><\/span><\/p>\n 7. Colorado<\/strong><\/span><\/span><\/p>\n Home costs have also fallen in Utah, Colorado\u2019s neighbor to the west. But similar-sized states, such as Maryland, Minnesota, Wisconsin, are still seeing increases.<\/span><\/span><\/p>\n For Colorado house hunters, it\u2019s worth noting that the cost of insurance in Colorado went up a staggering 39% from 2021 to 2022. So if you\u2019re thinking about buying a house soon, you can expect to pay about $325 a month for insurance.<\/span><\/span><\/p>\n 6. District of Columbia<\/strong><\/span><\/span><\/p>\n It\u2019s worth noting that if you want to buy in the D.C. area you may be able to find a more affordable house in Maryland or Virginia. While rates are still rising, the average cost of a house in Maryland is $406,314. You can expect to pay even less in Virginia, at an average of just $383,765.<\/span><\/span><\/p>\n Insurance prices in D.C. had a significant jump of 31% from 2021 to 2022. So, if you\u2019re house hunting in the District of Columbia, be sure you budget about $131 a month for insurance.<\/span><\/span><\/p>\n 5. Idaho<\/strong><\/span><\/span><\/p>\n Similar-sized states by population, such Hawaii, Nebraska, and West Virginia, are still seeing prices increase. Interestingly, Oregon, Nevada, and Utah, which all border Idaho, are also seeing decreases in home values.<\/span><\/span><\/p>\n Insurance has gone up 7% in Idaho from 2021 to 2022. You can expect to pay about $107 a month for coverage.<\/span><\/span><\/p>\n 4. Utah<\/strong><\/span><\/span><\/p>\n Surrounding states, like Arizona, Colorado, Idaho, and Nevada are also experiencing falling rates. So, if you\u2019re interested in buying out West, now might be a good time.<\/span><\/span><\/p>\n Insurance rates in Utah have gone up 7% from 2021 to 2022, with rates averaging $116 a month.<\/span><\/span><\/p>\n 3. California<\/strong><\/span><\/span><\/p>\n Housing prices in surrounding Western states, including Oregon, Nevada, and Arizona, are also coming down. However, prices are still on the rise in states with similar-sized populations, such as Florida, Texas, and New York.<\/span><\/span><\/p>\n Insurance costs in California have jumped a modest 5% from $166 in 2021 to $175 per month in 2022.<\/span><\/span><\/p>\n 2. Arizona<\/strong><\/span><\/span><\/p>\nWhat does this mean?<\/span><\/span><\/h3>\n
States where home prices are falling the fastest<\/span><\/span><\/h3>\n
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