During the pandemic buying frenzy, the real estate industry saw skyrocketing home prices, rock-bottom interest rates and buyers pulling out all the stops to win bidding wars — offering to pay the seller’s moving costs, waive contingencies, cover appraisal gaps and even offer all-expenses-paid vacations to coveted destinations (think Napa and Aspen) to sweeten the deal. However, that boom has lost its momentum and many markets have since reversed.
According to Zillow, home values have fallen across the country, with the South seeing some of the most widespread declines. Over the past year, 53% of U.S. homes have decreased in value, signaling a broad shift in market conditions. Zillow also reported that 4.1% of homes are now worth less than their previous sale price, while 1.6% have declined by more than 5%.
