UNDERWATER: Ominous sign house prices are poised to crash

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From Daily Mail: A massive amount of US home sellers are at risk of selling at a loss in the current housing market.

One in six of today’s US home sellers are likely to sell their property for less than they originally paid — up sharply from just 4.4 percent a year ago, reports Redfin.

While the risk of selling at a loss varies widely by location, the national increase marks a significant shift from last year’s market conditions.

“We are seeing the biggest price drops in the condo market,” said Redfin agent Andy Potarf.

Home prices were seriously inflated after the pandemic. Buyers at the time paid high prices amid stiff competition in a market boosted by record-low mortgage rates.

Now, 16.4 percent of single-family homeowners who bought after the pandemic are at risk of selling at a loss in the current market.

“Current sellers who bought their home after mid-2022 may have overextended themselves, thinking that prices were going to keep rising at similar rates,’ said Redfin economist Asad Khan.

“Prices have kept ticking up since then, but at a slower pace—and now prices have started to fall in some parts of the country, especially in the Sun Belt. That means sellers are in a position where they may need to choose between accepting a lower price, or taking the home off the market,” Khan said.

One market hit hard by the plunging prices is Florida as it is experiencing a surplus of listings, skyrocketing HOA fees, and terrible insurance rates.

Owners are slashing prices.

One example of these rock-bottom prices is a one two-bedroom, two-bathroom condo in a nice neighborhood with amenities. The owner purchased it in 2002 for $91,000. The sale price is just $1,000, but the buyer would still pay an incredible $1,503 per month HOA fee.

READ MORE AT Daily Mail.

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