Consider Twice Before Waiting for Lower Home Prices
As the property market evolves, you may be wondering where it will go from here. You're presumably thinking about property prices, which have fallen slightly since they peaked in June. And you've probably heard something in the news or on social media about a price crash on the horizon. As a result, you may be delaying your house purchase until prices decrease dramatically. But that is not the best strategy.
A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below compares home price trends in November to those in February:
So, should you hold off on purchasing a property till prices fall? If you consider what the experts say, you probably shouldn't. The data shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect to make sure you understand what’s happening in our local housing market.
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