Are Home Prices Going to Come Down?

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Without a crystal ball, no one can predict the future with absolute certainty, but recent data suggests that home prices are normalizing. This means they’re still increasing but at a slower pace.

The Real Estate Market Is Normalizing

From 2020 to 2022, home prices skyrocketed due to high demand, low interest rates, and a shortage of homes for sale. Such aggressive growth couldn’t, and shouldn’t, continue indefinitely. Today, price growth is slowing down, indicating the market is beginning to stabilize. According to the most recent Case-Shiller data, after remaining relatively flat for a few months last year, prices are now rising at a national level, albeit more gradually.

It all comes down to supply and demand. Increasing inventory combined with limited buyer demand, due to relatively high mortgage rates, is helping to ease some of the upward pressure on prices.

What This Means for You

If you’re considering buying a home, the slowing price growth is generally good news, but keep in mind that the real estate market is always about timing. This summer has shown us both bidding wars and great deals. Staying informed and working with a knowledgeable real estate agent can help you navigate this evolving market successfully.

Whether you’re buying or selling, understanding the current trends and market conditions will empower you to make the best decisions for your situation.

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