The question on the minds of sellers, buyers, homeowners, and just about everyone is whether home prices might fall. Sorry, buyers, that likely won’t happen anytime soon.
We're still in the midst of a severe housing shortage. This is a continuing hangover from the Great Recession’s aftermath, when builders largely held off on building while investors bought single-family homes and turned them into rentals. Meanwhile, the millennial generation is larger than the previous one, meaning there are more prospective buyers than there were a decade or so ago.
“You’ve still got a lot of young people who have still not bought a home but who would like to,” says Realtor.com Chief Economist Danielle Hale. “Anytime the market starts to cool, you’ve got people on the sidelines waiting for their chance to get in. That keeps both home sales and home prices from declining too much.”
But here's why it doesn't help to try to time the market:
- You could end up pricing yourself out of the market. As home values continue to increase — and market analysis indicates that home prices will keep climbing, albeit at a slower pace than recent months — the related costs for purchasing a home will also increase. These costs include your down payment, closing costs, etc.
- You could miss out on building wealth/equity in your home. If your plan is to stay in your home longer term (think 5 years or more), you'd be better off buying a home now so you can start building equity in your home than trying to time the market and possibly miss out completely.
Contact me today to see how we can work to get you and your family into a new home!
