Renters shouldn't wait for home prices to fall
Given the changing housing market, you may be uncertain about its future direction. Home prices have declined somewhat since their peak last June, and you may have seen news or social media stories about a looming price crash. As a consequence, you may be delaying a home purchase until prices drop substantially. However, this approach may not be the most appropriate.According to a survey conducted by Zonda, 53% of millennials are currently renting because they are waiting for home prices to decrease. However, recent data suggests that home prices have already hit their lowest point and are now increasing. Selma Hepp, Chief Economist at CoreLogic, has reported this information.
“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:
Based on the data and expert opinions, it’s not a good idea to wait for home prices to come down before buying. Across much of the country, prices are actually increasing. According to the Home Price Expectation Survey, experts predict that home prices will continue to rise steadily and eventually stabilize after 2023. To understand how home values are changing in your specific area, it’s recommended to consult with a local real estate professional.
Bottom Line
If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect today to make sure you understand what’s happening in our local housing market.
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