Waiting For Home Prices To Drop Dramatically? Here's Why You Shouldn't Wait

At Mortgage First Direct, we understand that many have been anticipating a potential crash in house prices akin to the 2008 housing crisis. However, despite shifts in the housing market, we have yet to witness such a "crash." What has changed, and why might waiting for a major price drop not be the best strategy? This article will delve into the reasons behind the current market stability and why acting now could be in your best interest.

Current Market Analysis:

While certain areas have seen house prices drop, the national trend has been relatively stable. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), believes this trend will continue, stating that "[House] prices will be steady in most parts of the country with a minor change in the national median home price."

Though motivated sellers, driven by various reasons, may be willing to drop their asking price, most sellers are holding firm due to low inventory levels. Yun points out that limited supply is influencing their willingness to adjust prices, leading to a scenario where "the repeat of a 30 percent price decline is highly, highly unlikely."

The Inventory Issue:

The limited supply of available homes in the market has created constant upward pressure on prices, especially in certain regions, where homebuyers face bidding wars. This supply-and-demand equation makes a major price crash improbable, further emphasizing the importance of consulting local professionals for guidance.

Why Waiting May Not Pay Off:

If more homes don't enter the market, the lack of supply will continue to prevent the major price drop that some have been waiting for in vain. Additionally, the current abundance of homeowner equity and historically low mortgage rates mean sellers aren't under pressure to sell quickly, reducing the chances of distressed home sales, such as foreclosures and short sales.

Mortgage First Direct's Advice:

With limited homes available for sale today, acting now is vital. As the housing market remains dynamic and uncertain, collaborating with a trusted mortgage professional and real estate agent who understands your local area and the current market volatility is crucial. At Mortgage First Direct, we are here to help you explore your options and make informed decisions about your homeownership journey.

If you're considering moving this spring, contact us at Mortgage First Direct, and let's embark on this exciting journey together.