U.S. housing market becoming friendlier to buyers as home prices cool, negotiations improve

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U.S. housing market becoming friendlier to buyers as home prices cool, negotiations improve
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Prices are likely to keep falling next year, economists say.

Home buyers are feeling the pinch, while home sellers are cautious about a cooling property market — that’s the hot take from Zillow Z senior economist Nicole Bachaud on the latest S&P SPI CoreLogic Case-Shiller U.S. 20-city price index, which fell 1.2% in September, its third consecutive monthly decline. Prices rose 10.4% versus 13.1% in August, reflecting the stronger conditions in late 2021.

“We are seeing demand falling back in the face of strapped budgets and potential sellers staying put, causing inventory to continue to struggle,” Bachaud said. “Price growth will likely continue to moderate, and in the short term prices will likely continue to fall. But this is all part of the housing market rebalancing, which will lead to a healthier, more stable market down the road.

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