Reply to When do you think housing prices will drop (or never)?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Supply is still far out stripped by demand. It doesn’t help that current owners bought or refinanced at the lowest interest rates in American history. That makes people hold on to properties instead of trading up or liquidating.

I refinanced $750K at 2.75% in 2021. We might leave DC, but I ain’t ever selling this property at that rate. It’s basically free money and I can find a tenant to pay off this mortgage. If we want to buy another home, we will just wait until we have another downpayment and use leverage.

I really don’t see things going, except in maybe 2nd home markets and Florida (where prices basically doubled).

[/quote]

Lol love replies like these when the reality is that prices HAVE ALREADY fallen and are projected to continue to fall all through next year at a minimum, because inventory is rising. Inventory is where supply meets demand. There are fewer houses being listed but WAY fewer buyers.

https://www.redfin.com/news/housing-market-update-homes-linger-on-market/[/quote]

The linked article says that in Washington DC, prices fell 2% over last year, and that is the first time prices have fallen since 2016. That isn't even a dent in prices given how much they went up over the last 2+ years (and were going up steadily before that). I'm all for home prices coming down. I think it needs to happen. But what we've seen isn't all that much help. Even another 10% still has prices way higher than pre-pandemic. And part of it is people like PP who are not selling because they could never get a deal like they have.  [/quote]

Prices have fallen 2% year over year. That means the insane spike that happened this spring has been erased. We are now at prices lower than November 2021. I assume you do not understand how monetary policy works and have not been watching the financial news if you think that the Fed’s rate hikes have had their full effect on the market.

The fact that prices went up so quickly in such a short period of time is exactly why they can go down quickly, too. Even a 20% drop means everyone except those who bought in 2021-22 will be in great shape. It would be much more sticky if the incline was long and gradual.[/quote]

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