Predicting the real estate market is like trying to guess the weather – it’s unpredictable. However, there are signs pointing to some growth in housing prices this year.
While home prices have been rising across the country, there’s a worry they might start to dip in the coming months. A recent survey found that about one in four people think home prices will drop over the next year. If you’re thinking of buying a home, this uncertainty might have you wondering if you should wait.
To give you some peace of mind, here’s what the experts are saying about home prices this year:
They’re predicting a modest increase. The latest forecasts from eight different sources suggest that, on average, home prices will rise by a little over 2% by the end of the year.
So why aren’t prices expected to fall? Well, for one, there’s still a shortage of homes on the market. Plus, as mortgage rates continue to stay low, more people are eager to buy. This combination is likely to keep pushing prices up, although maybe not as dramatically as in recent years.
Selma Hepp, Chief Economist at CoreLogic, says that with lower mortgage rates, demand for homes is expected to be strong in early 2024, which could push prices even higher.
What does this mean for you? If you’re considering buying a home, this news is generally positive. When home prices go up, so does the value of your house, which is great for building equity over time.
But if you’re waiting for prices to drop before making a move, you might want to reconsider. Experts believe prices will continue to rise this year, especially as we head into spring. While you might see mortgage rates decrease after you buy, you’ll also likely be paying more for the home itself.
If you’re worried about locking in a good rate, you can always ask the seller about a rate buydown, which could lower your interest payments for the first couple of years.
In conclusion, if you’re concerned about home prices, remember that many experts expect them to go up this year.
And if you’re ready to take the plunge into homeownership, I am ready to help you find the perfect home.