Waiting For Home Prices to Drop? ‘You’ll Likely Be Waiting for a Long Time,’ Experts Say
By: Next Advisor
Feeling squeezed by fast-rising home prices, higher mortgage rates, and larger monthly mortgage payments, homebuyers are left wondering when the market will see some relief and home prices will start to drop.
2022 has been difficult for those trying to afford a home. In January, home prices were rising fast, but at least mortgage rates were near record lows, offering some comfort for those trying to afford a home.
That’s no longer the case. Mortgage rates have quickly raced toward 6%, rising two whole percentage points since the start of the year. And at the same time, home prices have kept going up, although the rate of increase has started to slow a little bit.
Experts say it’s unlikely prices will drop in any significant way nationwide anytime soon. And while the rate at which home prices are rising will slow, that’ll likely come because fewer people can afford to shop in a pricier market. On a local level, individual markets might see prices come down, but experts say a big drop across the board is unlikely barring a big economic shift.
“You have this continued pressure around purchasing that even if we see dips, I think you’re going to see enough demand on the dips to keep home prices from going down by any true measure,” says Nicole Rueth, producing branch manager with the Rueth Team of Fairway Independent Mortgage Corp. “I think the appreciation is going to slow back down to where a normal appreciation should be.”