{"id":6874,"date":"2023-04-04T20:03:54","date_gmt":"2023-04-04T20:03:54","guid":{"rendered":"https:\/\/imsfund.com\/?p=6874"},"modified":"2023-04-04T20:03:54","modified_gmt":"2023-04-04T20:03:54","slug":"real-estate-prices-finally-decline-year-over-year-after-131-straight-months-of-increases","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/04\/04\/real-estate-prices-finally-decline-year-over-year-after-131-straight-months-of-increases\/","title":{"rendered":"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">It was bound to happen, and it finally did.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Last month, according to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/newsroom\/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a new report<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from the National Association of Realtors (NAR), real estate prices finally went negative,\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe median existing-home prices for all housing types in February was $363,000, a decline of 0.2% from February 2022 ($363,700), as prices climbed in the Midwest and South yet waned in the Northeast and West. This ends a streak of 131 consecutive months of year-over-year increases, the longest on record.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">All good things, right? Though at first, this might sound odd. I myself\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/home-prices-are-declining-should-investors-panic\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">wrote back in September<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0last year that prices had finally started to decline. But those were month-over-month prices. In normal times, even when the market is flat, prices tend to increase in the summer months and decrease in the winter months.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, over the last few years, real estate prices have simply been on an almost straight trajectory upward, leaving the typical seasonal cycle in the dust. That trend ended last year. But despite monthly prices declining, the more closely monitored year-over-year price index was still up. Now, for the first time since the bottom of the Great Recession, year-over-year prices are down.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The average price of a home in February 2023 is ever-so-slightly lower than there were in February 2022.<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-149387 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller.webp 928w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller-300x189.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller-768x483.webp 768w\" sizes=\"(max-width: 928px) 100vw, 928px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller.png 928w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller-300x189.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller-768x483.png 768w\" sizes=\"(max-width: 928px) 100vw, 928px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-149387 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 2\" alt=\"YoY Change: NAR Median Price vs Case-Shiller National Housing Price Index - Calculated Risk\" height=\"584\" width=\"928\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller.png 928w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller-300x189.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/case-shiller-768x483.png 768w\" sizes=\"auto, (max-width: 928px) 100vw, 928px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>YoY Change: NAR Median Price vs. Case-Shiller National Housing Price Index (2019-2023) \u2013 <a href=\"https:\/\/calculatedrisk.substack.com\/p\/case-shiller-national-house-price-271\" target=\"_blank\" rel=\"noreferrer noopener\">Calculated Risk<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Of course, 0.2% (or $700) is nothing to lose your head over. Especially when you look at the overall trend, that last, tiny little dip is the current \u201chousing crash.\u201d<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-149388 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 3\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM.webp 1114w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-300x210.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-1024x715.webp 1024w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-768x536.webp 768w\" sizes=\"(max-width: 1114px) 100vw, 1114px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM.png 1114w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-300x210.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-1024x715.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-768x536.png 768w\" sizes=\"(max-width: 1114px) 100vw, 1114px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-149388 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 3\" alt=\"Screenshot 2023 04 04 at 11.27.07 AM\" height=\"778\" width=\"1114\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM.png 1114w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-300x210.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-1024x715.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.27.07-AM-768x536.png 768w\" sizes=\"auto, (max-width: 1114px) 100vw, 1114px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>Nominal Housing Prices (1976-2023) \u2013 Calculated Risk<\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">It should be noted, however, that this is in nominal prices. When taking inflation into account, prices are down a bit more substantively. As Bill McBride\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/calculatedrisk.substack.com\/p\/inflation-adjusted-house-prices-46\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">notes<\/span><\/a><span data-preserver-spaces=\"true\">,<\/span><\/p>\n<p>\u201cIn real terms (using CPI less Shelter), the national index is 4.6% below the recent peak, and the Composite 20 index is 6.3% below the recent peak in 2022.\u201d<\/p>\n<p><span data-preserver-spaces=\"true\">Oddly though, on\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/ycharts.com\/indicators\/us_existing_home_median_sales_price\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a month-to-month basis<\/span><\/a><span data-preserver-spaces=\"true\">, prices actually rose in February for the first time since the middle of last year. After prices had fallen for seven straight months from their high of $413,800 in June 2022, they rose from $361,200 in January to $363,700 in February.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Again though, it\u2019s important to remember that, all things being equal, prices tend to fall in the winter and rise in the summer. So, this is likely just seasonal variation at play here. Even still, it may be a sign that the housing market is beginning to stabilize despite the high rates. But, even if prices were to stand still where they are through the summer, it would mark a decline of over 12% by the time we get to June.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Fewer Listings Buoying the Housing Market<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">As\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-sellers-strike-has-begun-why-the-housing-market-is-going-dark\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">I\u2019ve noted before<\/span><\/a><span data-preserver-spaces=\"true\">, substantially fewer people are listing their houses than last year, which is keeping supply down and thereby buoying housing prices. As\u00a0<\/span><em><span data-preserver-spaces=\"true\">Fortune<\/span><\/em><span data-preserver-spaces=\"true\">\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fortune.com\/2023\/04\/02\/housing-market-home-sellers-go-on-strike-home-prices-spring-real-estate\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">points out<\/span><\/a><span data-preserver-spaces=\"true\">,<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201c\u2026only 349,294 U.S. homes were listed for sale in March 2023. That\u2019s below the 437,270 listed in March 2022\u2014a period that was infamous for its tight supply\u2014and far below the 478,100 listed in March 2019.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Those are declines of 20.2% and 27%, respectively. Nothing to scoff at.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While listings for February were up compared to January (again, remember seasonality), new listings\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/march-2023-data\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">are still well behind<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0the last few years (with the obvious exception of when Covid first hit in March and April of 2020).\u00a0<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-149389 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 4\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303.webp 1000w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303-300x240.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303-768x614.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303.jpg 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303-300x240.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303-768x614.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" type=\"image\/jpeg\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303.jpg\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-149389 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 4\" alt=\"Newly Listed Homes (2017-2023) - Realtor.com\" height=\"800\" width=\"1000\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303.jpg 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303-300x240.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/NewListingsFinal_202303-768x614.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>Newly Listed Homes (2017-2023) \u2013 <a href=\"https:\/\/www.realtor.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realtor.com<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Despite the fewer listings, inventory is still up\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/calculatedrisk.substack.com\/p\/nar-existing-home-sales-increased?utm_source=post-email-title&amp;publication_id=443155&amp;post_id=109202724&amp;isFreemail=true&amp;utm_medium=email&amp;fbclid=IwAR0blP_djfhfs3FB4HafSs4pX2BNanFQLZPy5FokRj6gDfMSmDfMqpH3JuE\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">15.3% year-over-year<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0due to declining sales, although it ticked back down last month. February supply is 2.6 months compared to 2.9 months for January. Oddly enough, this is still considered a seller\u2019s market. Usually, six months is considered a balanced market, although it\u2019s been a long time since we\u2019ve seen that. In my humble opinion, four or five should be considered balanced.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Where Are Things Likely To Go From Here<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Housing collapses all but require a large number of delinquencies and foreclosures. That\u2019s what happened in 2008. Today, however, most homeowners are sitting on fixed, low-interest debt, making\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=U3mmU0mRlL0&amp;t=2s\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">such a collapse unlikely<\/span><\/a><span data-preserver-spaces=\"true\">. After all, why sell if you have a 3% mortgage?<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/calculatedrisk.substack.com\/p\/black-knight-mortgage-monitor-home-ca8\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">as the following chart<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.blackknightinc.com\/black-knights-february-2023-mortgage-monitor\/?\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Black Knight\u2019s Mortgage Monitor<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0makes obvious, mortgage delinquencies are still near record lows.\u00a0<\/span><\/p>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-149390 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 5\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM.webp 1233w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-300x192.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-1024x656.webp 1024w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-768x492.webp 768w\" sizes=\"(max-width: 1233px) 100vw, 1233px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM.png 1233w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-300x192.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-1024x656.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-768x492.png 768w\" sizes=\"(max-width: 1233px) 100vw, 1233px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-149390 sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 5\" alt=\"National Delinquency Rate on First Lien Mortgages (2002-2023) - Black Knight\" height=\"790\" width=\"1233\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM.png 1233w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-300x192.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-1024x656.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Screenshot-2023-04-04-at-11.29.53-AM-768x492.png 768w\" sizes=\"auto, (max-width: 1233px) 100vw, 1233px\"\/><\/source><\/source><\/picture><figcaption class=\"wp-element-caption\"><em>National Delinquency Rate on First Lien Mortgages (2002-2023) \u2013 <a href=\"https:\/\/www.blackknightinc.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Black Knight<\/a><\/em><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">Other than the short-lived spike upon the arrival of Covid-19 and the subsequent lockdowns, delinquency rates have been quite low since the end of the Great Recession. And right now, they are running a full 1% below the 2000-2005 average.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The only thing that could cause a major spike in delinquency is either a substantial increase in unemployment or runaway inflation at levels far higher than even the rates we\u2019ve seen recently.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The unemployment rate still sits stubbornly at\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bls.gov\/news.release\/pdf\/empsit.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">3.6%<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0despite dramatic rate tightening,\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/are-banking-failures-going-to-cause-another-2008-like-crash\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multiple bank failures<\/span><\/a><span data-preserver-spaces=\"true\">, and a slew of high-profile layoffs.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The Fed has been stubborn in sticking to a high rate policy to quell inflation, even going so far as to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2023\/03\/22\/what-the-feds-25-basis-point-interest-rate-hike-means-for-you.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">raise the discount rate by 0.25%<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0after Silicon Valley Bank and Signature Bank failed. So, unless the U.S. dollar loses its status as the reserve currency of the world (not\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/twitter.com\/GRDecter\/status\/1641179425315360769\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a completely unrealistic concern<\/span><\/a><span data-preserver-spaces=\"true\">, unfortunately), runaway inflation is quite unlikely.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Given the Fed pretty much stated aloud\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-fed-wants-a-housing-correction\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">they wanted to cause a housing correction<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0and are willing to cause a recession in order to quell inflation and housing prices, we should expect a continued softening of the real estate market but without a 2008-style collapse, other than perhaps\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-coming-collapse-of-downtown-office-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">in commercial real estate<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Of course, no one has a crystal ball. Maintaining high cash reserves and investing cautiously in the turbulent waters we are likely to continue swimming through is advised.<\/span><\/p>\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n<div class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 lg:w-1\/2 \">\n<main class=\"py-4\"><\/p>\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find an Agent in Minutes<\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Match with an investor-friendly agent who can help you find, analyze, and close your next deal.<\/p>\n<p><\/main>\n<\/div>\n<div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n<picture decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 6\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.webp \" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png\" decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block sp-no-webp\" title=\"Real Estate Prices Finally Decline Year-Over-Year After 131 Straight Months Of Increases 6\" alt=\"find an investment-friendly real estate agent\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Agent-Finder-Block-2.png\"\/><\/source><\/source><\/picture>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-prices-finally-decline-year-over-year-after-131-straight-months-of-increases\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article It was bound to happen, and it finally did.\u00a0 Last month, according to\u00a0a new report\u00a0from the National Association of Realtors (NAR), real estate prices finally went negative,\u00a0 \u201cThe median existing-home prices for all housing types in February was $363,000, a decline of 0.2% from February 2022 ($363,700), as prices climbed in the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":6875,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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