Despite an increasingly buyers market, housing affordability is at its worst since 1989.
There are tons of data points showing that the real estate market is moving toward favoring buyers. However, home prices continue to show increases year over year. However, those increases are slowing and could ultimately take us to decreasing home prices.
Too many balls in the air.
Interest rates, recession and inflation are all contributing to our current reality. This makes it harder to make predictions than usual – as if it was ever easy! However, given the trends I am seeing right now, I do not think it is unreasonable to expect an actual drop in average home prices later this year or into 2023.
So, what should I do.
Start subscribing to home searches. Get calibrated to what the market is doing and pick your moment.
If you were thinking of selling in the next year, doing it now might make sense for you. If the trends continue, at some point soon home prices will likely decrease year over year.