If you’re one of the millions of people considering buying or selling a home in the coming year, you likely have questions about home pricing and what you should expect as the housing market continues to cool from the 2021 craze. Although experts don’t expect housing prices to come crashing down, price adjustments will depend on factors such as supply and demand in your local market.
What does this mean for you? Well, the most important thing you can do is look at what homes are currently doing in your local neighborhoods. Are you still seeing homes sell for over the asking price? Or is there less of a sticker shock when you look at new listings? Here is what the experts are saying:
Danielle Hale, Chief Economist at realtor.com, says:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
Mark Fleming, Chief Economist at First American, says:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Taylor Marr, Deputy Chief Economist at Redfin, says:
“For those bearish folks eagerly awaiting the home price crash, you’ll have to keep waiting. As much as demand is pulling back supply is as well reducing downward pressure on prices in the short run.”
John Paulson, Founder of Paulson & Co., says:
“It’s true – housing may be a little frothy. So housing prices may come down or they may plateau . . .”
If you have questions about what’s happening with home prices today it’s best to speak to a trusted professional who can help navigate your local market. Here at the California Employee Loan Program we have relationships with many realtors across California and would be happy to get you in touch with someone who knows the area you’re looking to buy or sell in.