We have all heard of the crazy market shifts recently. Mortgage rates rose dramatically recently which impacted many buyers’ ability to buy a home and after several years of rapidly rising price appreciation, home prices finally peaked late last year causing experts and headlines to say home prices would end up crashing in 2023. But, as of now that has not happened.
Hi, I am Krista Mashore with eXp Realty and Homes by Krista. So, with all this going on in the market, why aren’t home prices crashing? According to Lawrence Yun, chief economist with the National Association of Realtors, and I quote “We simply do not have enough housing inventory nationwide. With the supply not being there, the repeat of a 30 percent price decline is highly unlikely.”
The lack of available homes on the market is putting upward pressure on prices and simply won’t allow a price crash in the near future. This is good news for sellers as experts believe low inventory will continue throughout 2023 preventing the housing market from crashing. This also means for buyers they may still have little choice but to bid up prices to get their offer accepted. Bottomline, the supply and demand equation will not allow for a housing crash. Of course, all markets are different and it is best to reach out to your local real estate professional to get the current market update.
If you are planning to enter the housing market and are feeling a bit confused about what is going on, it is best to consult an experienced real estate team. Feel free to connect with my team and I so we can guide you through this important decision.