Why Aren’t Home Prices Falling?

During the past few years, the housing market has been through a lot of changes. Going into 2023, there were predictions made that housing prices would fall. However, the further we get into the year, we see that house prices aren’t falling. Why might this be?

While we are no longer seeing the buying frenzy we saw over the pandemic years, housing prices have been relatively flat nationally this year. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) states that “Home prices will be steady in most parts of the country with a minor change in the national median home price.”

In today’s market, most people think sellers would have to lower their housing prices to attract buyers. This isn’t the case, though, because the housing market is still experiencing a shortage of homes. This shortage of homes is keeping supply low and dictating how low housing prices will (or will not) go.

As long as inventory - a shortage of homes on the market - continues to remain low, you can expect to see housing prices stay slightly above the median. That said, as we look forward to spring, we expect activity in the market will increase slightly.

Given all this, you might ask “Is this the right time for me to buy (or sell)?”  At Dwellhop, we’re happy to consider the options with you.