In most US markets, home prices continue to be on the rise, but about 11% of individual housing markets experienced declines in home prices in the fourth quarter of last year. These price drops are happening predominantly in the most expensive housing markets, like those in California. So even though prices in some markets are cooling down, that won’t necessarily translate into affordable housing.

After housing prices surged during the pandemic, due to low mortgage rates, it was thought that raising interest rates again would result in more widespread decreases in housing prices. However, due to the low supply of housing, prices in most of the US remain high.

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