04/09/2025
For those waiting for home prices to decrease…
This is a chart with an average percentage of U.S home prices either increasing or decreasing, as you can see there has only been 2 time periods where home prices decreased in the past 74 years.
I was around during the 2007-2011 financial crisis, this was mostly caused by risky mortgage loans (negative amortization, option arm programs) most people did not understand the programs they were getting into, they were only focused on the lower payment, this caused a lot of mortgages to recast (payments increasing) therefore we saw a lot of foreclosures resulting in lower sales prices…
Those programs are no longer available, the most common program today is a 30 year fixed.
I wasn’t in the mortgage industry in 1990-1991 (I was in elementary school👨🎓) but this was also a 2 year period where we saw home prices decrease. Not by much but statistically there was a decrease in home prices.
For my California buyers/homeowners, we do not normally see housing prices decrease, housing prices decreasing in California is home prices not increasing..
Be like the people that bought in 2018-2019, buy now before the feds start cutting interest rates, once we see mortgage rates lowered we will definitely see home prices increase.
Home prices increasing is good for those of us that are homeowners but not so good for those that are in the market to purchase a home.
This is just my opinion not a prediction of what is going to happen ✌️
Loan Officer with 20 years of experience.
Licensed in AZ,CA,TX
Visit my website at www.valencialendinggroup.com for more information.
