News outlets are starting to report that real estate values may be beginning to drop. ” ‘Anything goes’ list-price strategy no longer working,” says a headline in CNBC news.
Sales of all homes — new and existing — fell in June to the lowest level since last year. Mortgage applications have fallen, and so has construction of single family homes.
Whereas sellers were seeing ten to fifteen offers at the beginning of this year, that number is dropping to about half of that, realtors say.
All this is important for consumers who want to stay out of debt trouble. Over-priced homes that would not sell or could not be re-financed were a big contributor to the foreclosure crisis during the last recession. Being careful to not take on more mortgage debt than you can safely handle is key.