When will home prices starting going down again?

[Anonymous]

Sold the condo back in March 2022. because I kept seeing reports on how we are going to see the GREAT Depression in the 20s, and I am not sure if I should buy again or just wait? Does anyone know when home prices will start dropping? When are we expecting the Great Depression now? I know last year recession was delayed till late this year, so what will happen with the Great Depression?

[Anonymous]

Never

[Anonymous]

Prices are just so inflated right now compared to 5-10 years ago. Even if the prices drop, it’ll be minimal. A 40k price cut on a 900k home isn’t really a huge drop.

[Anonymous]

Anonymous wrote:Never

Agreed. Going down on average? Never, or very very unlikely. Going up less, that's happening now.

[Anonymous]

I honestly don't know - I'm not sure they will. I sold in 2021 when we had to move to take care of an elderly relative. In retrospect, we should've bought immediately after moving because we missed some of the increase in prices. Now - I just don't know what to do. I believe prices are overinflated - but I see no reason for them to go down. Inventory is low - and will remain so while interest rates are on the higher end. If interest rates go down - there "might" be more supply - but demand will also increase. How that balances out - no one knows.

[Anonymous]

Unfortunately the inventory problem is going to prop them up for a long while.

[Anonymous]

I was researching this video yesterday. Looks like there might be a reason that prices do fall quite soon. I am hopeful. This is a great analysis.

[Anonymous]

If its a long term primary residence, buy when you need and can afford. There is no point in timing market for a home, you do that for investment properties. Set a budget and don't overbuy but also don't let go of a more updated one for small saving. You are never going to be 100% happy with the purchase and will have some buyers remorse. Don't be too picky.

[Anonymous]

Anonymous wrote:Prices are just so inflated right now compared to 5-10 years ago. Even if the prices drop, it’ll be minimal. A 40k price cut on a 900k home isn’t really a huge drop.

You're aware of the amount of inflation we've had over the last three years, right? Just that a lone supports much of the price increase in the DC area.

[Anonymous]

Prices will keep going up, there is no empty land near job hubs. It is what it is. If you want to pay less, move to a low cost of living area in boonies.

[Anonymous]

People have been saying "we're in a bubble, it'll pop any day now" since like 2010.

Guess how many times they've been right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never

Agreed. Going down on average? Never, or very very unlikely. Going up less, that's happening now.

Agree, never - certainly not around DC. And as soon as interest rates come down prices will shoot up even more. It completely sucks for anyone home shopping, but demand is far outstripping supply. If you wait, homes will get even more unaffordable.

[Anonymous]

They're not going down because interest rates will remain flat or later this year, go down. Home prices don't go down when rates go down.

[Anonymous]

There are so many local and international investors interested, its very unlikely for prices to go down significantly. Only difference which happens is having to face bidding wars and waiving contingencies in peak market and having some negotiating power in down market. Overall, total 30 year difference isn't lucrative enough to delay or expedite your primary home purchase for perfect timing.

What you can do is to buy within your budget, have a 20%+ down, home repair emergency fund, enough money to pay mortgage for few months if laid off. You can save on interest by sending some extra money every moth towards principal to pay off earlier, if you can shave off 5-10 years by extra payments with bonuses and stuff, you get lot of equity or even a paid off home.

[Anonymous]

Prices aren’t going down, FOR ANYTHING. The consumer has accepted this as the new normal, so while the rate of inflation may lower, inflation is still occurring and prices are still increasing over time.

I basically study this for a living. It is impossible to time the market. You can only time how long you’re in the market. But when you need to and what you can afford. Refinance if rates lower after you buy.