Hello everybody! Welcome back to Suburban Snacks, where we not only inform you of current Real Estate topics but also review a different food item every month! This month’s snack is…pelon mini! Before we review the snack, we’ll be informing you on what you should know considering recent home price drops! Rising mortgage rates and inflation in the wider economy caused housing demand to drop sharply in June, forcing home prices to cool down. Home prices are still higher than they were a year ago, but the gains slowed at the fastest pace on record in June, according to Black Knight, a mortgage software firm. The annual rate of price appreciation fell two percentage points from 19.3% to 17.3%. Price gains are still strong because of an imbalance between supply and demand. The housing market has had a severe shortage for years. Strong demand in these past two years has accelerated pricing. CNBC states, “Still, while this was the sharpest cooling on record nationally, the market would have to see six more months of this kind of deceleration for price growth to return to long-run averages”. They calculate that it takes about five months for interest rate impacts to be fully reflected in home prices. So how will these price drops affect the average homeowner? Price drops will not affect the average homeowner as much as they did during the Great Recession, because homeowners today have considerably more equity. Tight underwriting and several years of strong price appreciation caused home equity levels to hit record highs. However, the strong demand in the market recently could present a problem for some. About 10% of mortgaged properties were purchased in the last year, so price drops could cause some borrowers to edge much lower in their equity positions. So, if you are a homeowner who would like to learn more about how they’re positioned in this current market then we at Suburban would love to help! Do you like…pelon mini? Let us know in the comments below. That’s going to do it for us here at Suburban Snacks. If you are interested in investing in single-family homes feel free to check out our website at suburbanrealestategroup.com. Also, click the link below to follow us on Facebook. Thanks for watching, my name is Cade Olof and we will see you in the next one!