Why are home prices across Texas dropping? - NBC News

[TexasTowelie]

A pandemic-era surge in demand for Texas homes sent demand soaring, and prompted a wave of construction. Now, as that new construction hits the market, home prices in Texas are starting to fall, according to Redfin. NBC News' Priscilla Thompson reports.

[BlueWaveNeverEnd]

1. prices plunging in some areas

[MichMan]

2. Isn't housing being more affordable a good thing?

[Javaman]

3. I can only make a guess

they have become so outrageously expensive that first time buyers have stopped trying to buy. thus forcing the market to reduce prices.

[BobTheSubgenius]

4. Housing prices largely reflect consumer confidence.

More people now think that the current (or previous, depending on POV) market prices are unsustainable, often because a dip in income or employment levels has occurred, are coming, or are suspected to be.

The same thing is happening here - Vancouver BC - after nothing but prince increases for years. The average cost of a single-family home here is now BARELY under $2 million. How is that sustainable? Anecdotally, I got a very good deal on the townhouse my wife and I now live in the summer of 2022. Starting with the market value instead of actual purchase price, and following the upward trend of this complex, I made a paper profit of about $60-80K over the next couple of years.

With the latest "correction," this place is now barely above my purchase price. People that are seemingly unable to grasp the market dynamics are still asking almost what the peak prices were, and are usually getting ZERO walkthroughs, or even any interest at all during open houses. A 90 day listing will come onto the market and then expire without even a nibble.