What Will It Take for Prices To Come Down?
You may be wondering if home prices are going to crash. Some people might even be hoping this happens so they can finally purchase a more affordable home. But experts agree that's not what's in the cards – and here's why.
There are more people who want to buy a home than there are homes available to purchase. That’s what drives prices up.
Prices Depend on Supply and Demand
The housing market works like any other market – when demand is high and supply is low, prices rise. According to the latest estimates, the U.S. is facing a housing shortfall of several million homes.
“The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.”
How Did We Get Here?
For over 15 years, homebuilders haven’t been building enough homes to keep up with buyer demand. After the 2008 housing crisis, homebuilding slowed significantly, and it’s only recently started to recover.
Even with new construction on the rise, builders are playing catch-up. As long as there’s a housing shortage, home prices will remain steady or increase in most areas.
What About Next Year?
The majority of experts agree prices will keep rising next year, but at a much slower, healthier pace:
It’s important to note home prices vary by market. If your local market has more inventory available, prices could grow more slowly. But in areas where inventory remains tight, prices will keep climbing.
Bottom Line
If you’re wondering what it’ll take for prices to come down, it all goes back to supply and demand. To see what’s happening with home prices where we live, let’s connect. Reach out to me today at 512-646-9156 to see if you're ready to buy!
Sarah White
Meet Sarah White, a proud Californian with a passion that extends far beyond the Golden State's borders. While her journey began in the hospitality industry, where she refined her leadership skills an....
