Home prices probably aren’t coming down.
I’m sure you’ve heard plenty of news headlines that have told you the opposite, but hear us out.
Before we explain why home prices likely aren’t going down, let’s review the data…
Rewind to the first half of 2022. Home prices rose dramatically in such a manner that was unsustainable.
In the second half of 2022, home prices went through a correction period and declined slightly.
The media went a little crazy with this, some claiming that the market might crash.
However, since the beginning of 2023, prices have steadily risen again. In a totally normal, healthy manner.
And according to all data and historical trends, this increase is likely to continue.
Why are home prices continuing to rise?
Well, for one, the higher interest rates have caused the supply of houses to go down.
In other words, even though those high interest rates have tempered buyer demand, we’re low on inventory. There are still too few homes on the market to significantly drive down demand and lower prices.
Only time will tell, but my guess is that even if interest rates begin to lower, there will still be more buyers than homes on the market.
If you’re considering buying or selling a home, let’s talk.
Determining whether its a good time to buy/sell will need to be a personalized conversation.
There’s no one simple answer – contact us!