The housing market has gone through many changes recently. Many people expected crashing home prices. But where is it now?
Last year, mortgage rates rose dramatically and home prices finally peaked the previous summer. Headlines saying crashing prices would come rampant, yet they never did. Instead, we’ve seen that home prices have been relatively flat on a national scale. The National Association of REALTORS®’ chief economist, Lawrence Yun, explains.
“Prices will be steady in most parts of the country with a minor change in the national median price.”
You may think that to attract buyers in the current market, sellers would have to lower their listing prices. This is partially why some sellers have been waiting for crashing prices. However, there is something else at play: low inventory. Lawrence Yun says that is limiting just how low prices will go:
“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”
The lack of available homes for sale is putting upward pressure on prices. According to Bankrate, this ongoing lack of inventory explains why some buyers have little choice when it comes to bidding wars for the homes they want. Also, Bankrate says the situation with low inventory indicates that the supply/demand equation will not allow price crashing to occur. Industry expert Rick Sharga believes that we are likely to continue seeing a lack of homes for sale throughout 2023, which will further keep prices from crashing in the future.
So what’s the bottom line? If you are thinking of moving, now is the time to sell. To maximize the dollar amount you can get for your current home, contact your local real estate specialist today at SurterreProperties.