Are Home Values About to Fall? It Depends on the Location

Stark regional differences are opening up in the housing market. Buyers

have the power to demand big price cuts in some parts of the country, but still face bidding wars in others. 

The national supply of homes for sale hasn’t returned to normal yet. In January, U.S. existing-home inventories were 16% below levels seen this time five years ago, according to the National Association of Realtors. Homeowners with ultralow mortgage rates have been reluctant to sell and lose their cheap borrowing costs. But this lock-in effect is slowly loosening as more people decide they can’t delay moving any longer, so supply is increasing.