Higher Interest Rates Trigger 24.8% Inventory Surge and Targeted Home Price Drops

Home prices in Greenville, Mississippi, are projected to fall 16.7% over the next 12 months. This decline is part of a 1.0% nationwide housing correction projected by Zillow. The shift follows a 24.8% increase in housing inventory over the last year, as reported by Realtor.com. Sellers who had delayed listing their homes to maintain low fixed-interest mortgages could no longer delay moving because interest rates remained higher for longer than analysts expected. In smaller markets, price drops are more acute. Zillow projects declines of 14.8% in Clarksdale, Mississippi; 13.7% in Pecos, Texas; 13.6% in Cleveland, Mississippi; 11.9% in Bennettsville, South Carolina; 11.5% in Opelousas, Louisiana; 11.5% in Raymondville, Texas; 11.4% in Hobbs, New Mexico; 11.3% in Morgan City, Louisiana; and 10.8% in Indianola, Mississippi. Larger metropolitan areas face smaller percentage drops: New Orleans, Louisiana, at 7.2%; San Francisco, California, at 6.1%; Austin, Texas, at 5.1%; San Jose, California, at 4.0%; Honolulu, Hawaii, at 3.8%; Denver, Colorado, at 3.8%; Sacramento, California, at 3.7%; San Antonio, Texas, at 3.6%; Portland, Oregon, at 3.5%; and Washington, D.C., at 3.3%.