3 Reasons Why Prices Won’t Fall Any Time Soon
Here are three reasons why home prices won’t drop the way you think.
Will home prices finally go down? We’re constantly getting that question. People are waiting to buy until prices drop, but will that happen? You might think it’s likely with all the news about inflation and interest rates, but what’s really happening in the market?
Take it from a real estate expert: Prices probably won’t drop the way you’re expecting. We may see a correction, but we won’t see anything like what happened to prices in 2008. Here are a few good reasons why:
1. Our inventory is still tight. We still have fewer than two months of inventory. We won’t see prices drop significantly until we’re in a buyer’s market, which happens when we have six months of inventory. Our supply of homes would have to triple for that to happen.
"Prices probably won’t drop the way you’re expecting."
2. The experts expect price appreciation. If you average all the major real estate organizations' home price expectations, it equates to 20% over the next three years. Today’s $500,000 home will be worth $600,000 in just three years.
3. Interest rates aren’t forever. We want to find your forever home, not your forever rate. Interest rates are climbing, so instead of waiting, lock one in right now. If it goes down, you can always refinance.
If you have any questions about our market or real estate in general, feel free to call or email my team or me. We’d love to help you.