The National Association of Realtors reported that 100 out of 149 metropolitan statistical areas had price declines in Q1. The median existing single-family home prices was down 7.7% y/y.
This is stale data, but the trend is not expected to slow for at least another few quarters. The key will be how the labor market holds up for the rest of the year. The back-up in the unemployment rate has been well short of what is typically the case during recession. Historically, job-loss is the biggest factor affecting local real estate markets. While the reset of interest rates has dominated in the current correction, especially among more marginal buyers, if the economy can continue to post respectable growth it will provide an important pillar of support for the housing industry.
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