Zillow released its Q3 2022 market research report stating that we are on the verge of a serious buyer's market, complimenting Goldman Sachs' latest market report that home prices will drop in 39% of U.S. cities in 2023:

• Home prices are expected to decline somewhat in expensive metros and former pandemic hotspots, including Austin, Raleigh, and Boise
• Inexpensive Midwest markets — such as Columbus, Indianapolis and Minneapolis — are the least likely to see home prices decline over the next 12 months

Rising interest rates and inflation are starting to now affect luxury markets:

• Luxury home sales were down 28.1% nationally from the same time period last year. That’s even a bigger drop than the 23.2% decline at the beginning of the pandemic
• The biggest declines were in Oakland, CA (-63.9% YoY), San Jose, CA (-59.6%), Miami (-55.5%), San Diego (-55.3%), and Seattle (-52%)
• Despite these declines, the median sale price of luxury listings still rose across all of the top 50 metros, with the largest gains in Florida

As interest rates are hovering around 7% , many cash buyers are taking advantage of the price decreases. According to Realtor.com, new home sales surged in August:

• New home sales jumped 28.8% month-over-month, the 2nd-biggest new home sales jump on record
• The Northeast saw the greatest increase in new home sales, up 66.7% month-over-month