Here Are the Markets at Risk for Falling Home Prices – GlobeSt
March 17, 2022Kim Lanham, senior vice president, Digital Risk, tells GlobeSt.com that she believes while prices rise, the extreme supply shortages across the county will continue to exacerbate this problem in most areas.
“While some areas may start to see a decline and overvaluation there are still enough borrowers willing to make the purchase, many who are waiving appraisals as a reason to back out of the deal and make up the difference with cash,” Lanham said. “Also, valuation models are having a difficult time keeping up with the rapid increases and finding comparable properties.”
North Dakota, Illinois, Louisiana, Mississippi and several states in the northeast that are losing population to other states may see this decline faster than others, she said, “but with over 4 million borrowers still looking there is no shortage of buyers. Increasing interest rates could affect the price ranges of some borrowers forcing them to downgrade expectations if they need to move quickly.”
