We’re still well below normal levels of inventory and that’s why even with the pullback in demand, we still see house prices appreciating. In other words, even with higher mortgage rates, moderating buyer demand, and more homes for sale, home price appreciation will slow, but prices won’t decline.
It’s important to know the housing market isn’t a bubble about to burst, and home price growth is supported by strong market fundamentals. To understand why price declines are unlikely, it’s important to explore what caused home prices to rise so much recently, and where home prices are headed.
Here’s what you need to know. You might be asking: why did home prices climb so much last year? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was extremely high, and supply was record low. While housing inventory is increasing and buyer demand is softening today, there’s still a shortage of homes available for sale. That’s why the market is seeing ongoing price appreciation.
If you’re planning to buy a condo, that means you shouldn’t wait for home prices to drop to make your purchase. Instead, buying today means you can get ahead of . future price increases, and benefit from the rise in prices in the form of home
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