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The American City Where Home Prices Dropped 50% – Darlinez News.

<p> &lbrack;ad&lowbar;1&rsqb;<br &sol;>&NewLine;<&sol;p>&NewLine;<div>&NewLine;<div class&equals;"entry-content column content primary is-two-thirds">&NewLine;<div class&equals;"" style&equals;"padding-bottom&colon; 10px&semi;">&NewLine;<div class&equals;"">&NewLine;<p>&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<span class&equals;"tag is-dark is-uppercase">Investing<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;p>&NewLine;<div class&equals;"byline-container">&NewLine;<div class&equals;"post-date is-italic has-text-grey is-size-7 has-text-weight-medium ">&NewLine;<p>November 13&comma; 2022 11&colon;00 am<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<p>One of the worries about high interest rates and a slowing economy is whether home prices will drop sharply&period; Most economists believe the fall in prices will not be as large as that during The Great Recession&period; However&comma; if mortgage rates rise above 10&percnt;&comma; the housing market could be as badly bloodied as it was in 2008 in parts of the country&period; In some markets home prices dropped over 30&percnt; that year&period; In one Florida city&comma; prices 50&percnt;&period;<&sol;p>&NewLine;<p>The Federal Reserve has raised interest rates more aggressively than at any time in the last two decades&period; Its governors have indicated that it is not over&period; While the Consumer Price Index increase took a small dip in October compared to figures from the previous three months&comma; it was still up 7&period;7&percnt; compared to a year ago&period; The Fed’s target inflation rate is 2&percnt;&comma; and interest rate increases will need to last at least through next year to hit that number&period; Mortgage rates have risen from 3&percnt; last year to 7&percnt; recently&period; That takes monthly mortgage payments up by hundreds of dollars a month on most mid-priced houses&period;<&sol;p>&NewLine;<p>The economy has started to slow enough that negative GDP could begin as early as the first quarter of next year&period; This will cause rising unemployment&period; A drop in GDP sometimes combats rising inflation&period; Some economists&comma; like Harvard’s Larry Summers&comma; believe unemployment will need to rise above 5&percnt; and perhaps to 7&percnt; to slow the economy to a place where interest rates are undercut by falling consumer and business demand&period;<&sol;p>&NewLine;<p>One major difference between today and The Great Recession is that many Americans had a subprime&comma; variable-rate mortgage&period; When the interest rates on these reset higher&comma; mortgage payments overwhelmed some homeowners&comma; particularly those out of work&period; And the jobless rate reached 10&percnt; in October 2009&comma; which created a perfect storm for mortgage defaults&period;<&sol;p>&NewLine;<p>The real estate markets with the fastest rising prices in a housing boom often reset lower during a bad economic period&period; These homes can become overpriced due to the rush of buyers&period; Mortgage rates and jobless rates can make those rushed disappear&period;<&sol;p>&NewLine;<p>This reset of homes happened in the popular housing market in 2008&period; Several cities in Florida had home prices that dropped over 20&percnt;&period; In Cape Coral&comma; a popular housing market today&comma; home prices dropped over 50&percnt; in the fourth quarter of 2008 compared to the same quarter the year before&period;<&sol;p>&NewLine;<p>How much will home prices drop over the next year&quest; The drop could be double digits in markets with large influxes of people&period; There is a recent precedent for that&period;<&sol;p>&NewLine;<section id&equals;"email-subscribe" class&equals;"section section-email-sub single-email-sub"><&excl;-- div&period;svg-icon --><&sol;p>&NewLine;<div class&equals;"container">&NewLine;<div class&equals;"subscribe-message" style&equals;"line-height&colon; 1&period;3&semi;">&NewLine;<p>Get Our Free Investment Newsletter<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;section>&NewLine;<div id&equals;"smartasset" style&equals;"margin-bottom&colon; 1em&semi; margin-top&colon; 1em&semi;">&NewLine;<p><b>Sponsored&colon; Tips for Investing<&sol;b><&sol;p>&NewLine;<p>A financial advisor can help you understand the advantages and disadvantages of investment properties&period; Finding a qualified financial advisor doesn’t have to be hard&period; SmartAsset’s free tool matches you with up to three financial advisors who serve your area&comma; and you can interview your advisor matches at no cost to decide which one is right for you&period; If you’re ready to find an advisor who can help you achieve your financial goals&comma; get started now&period;<&sol;p>&NewLine;<p>Investing in real estate can diversify your portfolio&period; But expanding your horizons may add additional costs&period; If you’re an investor looking to minimize expenses&comma;&Tab;consider checking out online brokerages&period; They often offer low investment fees&comma; helping you maximize your profit&period;<&sol;p>&NewLine;<&sol;div>&NewLine;<p>&Tab;&Tab;&Tab;&Tab;<&excl;-- &num;post-footer--><&sol;p><&sol;div>&NewLine;

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