| American home prices are sliding as the US Federal Reserve ploughs ahead with rate increases, raising fears that parts of the US property market could be “getting close” to a crash last experienced in 2008.
“It’s a lot different from what it was in 2021. It’s not quite a crash yet, but it’s getting close,” Davis said.“The peak was May 2022. Since then, we have had an 18 per cent correction. Twenty per cent is usually seen as a crash. But it’s actually just started to get better in the last month.”In Washington, aerospace technician Regis Venti and partner Jaime Cordes say the rising rates and fall in prices are not a concern for them yet.
“We have such a low-interest rate on our mortgage, it’s just 2.9 per cent, that our monthly mortgage payment as well as [body corporate fees and taxes] is comparable to that of renting similarly sized units in the area.”, the highest annual rate since 1979. States such as Idaho had notched up a 34 per cent increase in just 12 months.
Airbnb hosts are switching from short- to long-term lets or selling their properties, adding to a growing number of listings. While rent went up, according to the monthly US inflation figures, analysts at Goldman Sachs say rent renewals are hiding the rental cuts in the market, although that is likely to change soon.