Home prices appear to have weakened in December 2022
According to the S&P CoreLogic Case-Shiller US National home price NSA index, the rate of increase of home prices slowed dramatically in December 2022. Home prices in December 2022 were 5.8% higher compared to the previous year. That number is down from a 7.6% annual gain in November. Prices are also 4.4% below their peak in June 2022.
Which housing markets are weathering home price corrections so far?
While home sales in some areas have been a challenge, there are 124 markets in the US that have defied expectations and remained hot. Those 124 markets have weathered the downturn and continued to thrive despite home prices that have been trending upward and mortgage rates in the 6%-to-7% range.
Most of the hottest markets are located in the Midwest, Southeast, and Northeast. The West Coast was already a bit overheated before rates started rising, and several key markets have already started to correct.
Meanwhile, markets like Des Moines, Little Rock, Miami, Philadelphia, and Hilton Head Island have been among the hottest in the country.
Housing analyst Bill McBride was asked where he sees the market going in the next year. McBride stated, “Since national house prices increased very quickly during the pandemic—up over 40%—it seems likely that some of the usual “stickiness” will not apply. I think the most likely scenario now is nominal house prices declining 10% or more from the peak.”
How do you sell a multi-million-dollar property that’s been on the market for 11 years?
There’s a multi-million dollar property for sale in Highland Park, IL that real estate agents have been unable to move for 11 years. The home is over 56,000 sq. ft., features a walk-in humidor, a full-length basketball court, a price cut to $14,855,000, and a massive gate with the number ‘23’ on the front.
The property in question is Michael Jordan’s estate, and he’s been trying to get someone to buy it for over a decade. His agents have tried multiple gimmicks to generate interest including announcing the listing on February 29th (a LEAP year), inviting the Today Show for a visit, and even lowering the price to match Jordan’s famous ‘23’ (all the digits add up to 23).
Sadly, the home hasn’t had an offer since 2015, and it doesn’t appear like anyone is looking to jump at the opportunity to get into Jordan’s house.
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