If you’re hearing talk that home prices are gonna come crashing down, here’s the thing you gotta understand: there’s a factor at play today that’s limiting just how low prices will go and that’s the inventory of homes for sale.
Source: NAR
This graph shows that the supply of homes for sale is still low today. Here’s why it matters for home prices:
Generally speaking, when there aren’t enough homes available for sale, there’s upward pressure on home prices. And that’s because eager buyers have to compete for the limited supply of homes on the market which drives the prices up. This is gonna be one of the big reasons we’re not gonna see home prices come crashing down anywhere, especially nationwide.
Now, don’t get me wrong, home prices are always going to vary market by market and some areas have seen slight declines. Others have seen slight climbs but where we are, this inventory is not going to change anytime soon. We’re very landlocked and we don’t have new buildings going on en masse. So ,if you have questions about what’s really happening here with prices or the supply of homes for sale, let’s connect!