Think Hard About Waiting For Home Prices To Drop

The real estate market continues to change this year having many to wonder where it will go from here. The days of historically low mortgage rates which only fueled the bidding wars that were occurring on most any property for sale have been gone a while now. Nowadays the rates have climbed which has called for a slower pace for home sales perhaps allowing buyers to have a bit more time to negotiate the right deal with less competition. The big question many are wondering now is what should we expect in the way of trends for home prices?

There has been a lot of talk about a potential slowdown in prices since they peaked last year in June. Many have been debating if they should be holding off on a home purchase as a result. In fact, a recent survey from Zonda shows 53% of millennials are still renting now because they’re waiting for home prices to decline. However, more recent data is suggesting that home prices have already bottomed out and are now on the rise again. Data from Black Knight shows home price trends in November of 2022 compared to February of 2023. The study shows that 96% of home prices had declined during the month of November where 78% of home prices increased in February of 2023.

This information will make you think hard about waiting as the signs are showing that prices are now increasing as opposed to decreasing. Other experts and studies including the Home Price Expectation Survey anticipate that prices will increase steadily and return back to more of a normal pace of appreciation after this year. 

Each market will always perform differently and there will be subtle nuances within every area. The best way to help you understand the trends and status in your market or area of interest is to rely on a professional real estate agent like myself to assist you with the best insight and guidance.