If you’re thinking about buying or selling a home this year, you may have questions about what’s happening with home prices today as the market cools.
In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of home price reduction depends on factors like supply and demand.
Home prices will vary, depending on where you live. In the Toledo metro area, prices were hot during the recent seller's market but not nearly to the sizzling point of many major metro areas. So, expect prices to be within 5% (up or down) of current values.
Here’s a quick snapshot of 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 lower demand is causing some sellers to wait, so that huge price drop may take a while:
“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.”
These are early opinions; the market will dictate what actually happens. But if you need to buy and are prepared with a good lender and appropriate down payment, you have a better chance at winning a bid than just a few months ago.
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