Home Prices are still Rising!

The Growth in Prices is slowing. This means prices are not necessarily going down but rather increasing at a slower rate. The expectations for a one year median home price growth is 4.4% according to the Federal Reserve Bank of New York’s Survey of Consumer Expectations. Interest rates are not high. They are higher than the last few years but not high compared to the long term. Home values tend to rise over the long term. As of 2022, the average homeownership duration has risen to roughly 10.5 – 13 years according to First American Data & Analytics and Redfin. The nation faces a shortage of 5.5 million homes, a gap so large it would take more than a decade to close, even if new-home construction accelerates, according to research from the National Association of REALTORS®. What does this mean for real estate prices? There is no way to predict the future of real estate prices but if you are thinking of buying a home, now may be the time to start viewing the market. More inventory is coming online and the market is starting to normalize. However don’t wait on the sidelines expecting prices to drop unrealisticly low.