HousingWire Daily Logan Mohtashami on how many homes will take price cuts this spring
Jan 11, 2024
Lead Analyst Logan Mohtashami discusses the forecasted decrease in price cut percentages this spring, the dynamics between house prices, price cuts, and demand in the housing market, the abnormal inventory cycle after 2020, the variation in price cuts and home prices across different markets, and the potential impact of a red sea situation, inflation, banking crisis, geopolitical surprises, and high interest rates on the housing market.
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Fewer Price Cuts in Spring 2024
- Fewer homes needing price cuts suggests a stronger market for sellers.
- Logan Mohtashami predicts this trend for Spring 2024, breaking 2023's low price cut percentages.
Reasons for Price Cuts
- Price cuts happen due to overpriced homes or low demand.
- Traditionally, one-third of homes receive price cuts, influenced by mortgage rates.
2024 Housing Market Outlook
- The 2021 market was 'savagely unhealthy' with rampant multiple bids due to low rates and inventory.
- 2024, with higher rates, won't see that frenzy, despite low inventory and pent-up demand.