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Are Home Prices Going to Drop?

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Real Estate Agent with Coldwell Banker Realty MD RE License 579412

Are Home Prices Going to Drop?

It’s no secret that inflation has improved over the past couple of months, but it has edged up a little with the rising cost of goods and transportation. The Federal Reserve has indicated that interest rates could drop over the coming months. There is still a possibility of rate hikes, depending on what happens with inflation and other economic factors, but so far, the future looks hopeful. Lower rates would make it more affordable for people to buy a home.

What does this mean for the price of homes? While home value appreciation is expected to slow down some, it isn’t yet clear if home prices will decrease. Given recent trends, some areas may experience a price increase of around 3-4%, while others may see a 1-2% drop. Prices are directly connected to housing inventory. If there is a considerable increase in inventory, home values will remain high.

The number of homes on the market is still very low, especially here in the DMV area, and is showing a declining trend compared to the same time last year. To reach a balanced market, around 5 to 6 months of supply needs to be available at a given time. The current inventory is only enough for at most a 3-4 month supply. Inventory levels will improve somewhat in 2024, which could help with home prices. However, likely, new home construction will not reach healthy levels until some time in 2025.

All of the above indicates that home prices are unlikely to drop significantly in 2024. Until we see any significant changes to interest rates, inventory levels, or home prices, it will remain mostly a seller’s market. In the DMV area, we are quite sheltered because of the proximity of many military bases and government.  As long as military families PCS and with this being an election year and the potential for a change in our government exists the housing market in the area remains strongly a seller’s market. The market can change quickly though, so if you’re ever curious about our local conditions or want to discuss how the latest market trends may affect you, reach out anytime.

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Creating generational wealth, one home at a time. If you are thinking of buying a home,  did you know I can help you find a home for as little as $1000 of your own money?  Thinking about selling a home in  Maryland give me a call at 410-292-0100 or start your search here and I'll talk about the market conditions and what your home could be worth in today's marketplace if you are thinking of selling.  If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone are worth the plunge into today's market. Coldwell Banker and I are connected with some of the world's brightest and best real estate agents and can assist with your move here to Maryland or anywhere in the United States or abroad.  Ask me how.

During these trying times, Coldwell Banker and I are equipped with the latest technology to sell your home using Virtual Open Houses, Virtual showings, electronic signing, virtual inspection, and even online closings.   You can contact me through Snapchat, Duo, Skype, Google Chat, WhatsApp, text messaging, or simply by phone.  We take your and your family's health and safety very seriously.  

June Piper-Brandon ~ Associate Broker ~ MRP, AHWD, CDPE, ePro

Coldwell Banker

410-292-0100 - Direct   410-461-7600 Office

June Piper Brandon - Agent with Century 21 New Millennium

June Piper Brandon - Agent with Century 21 New Millennium

Comments(3)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

June Piper-Brandon no sign of home prices going down around here, in fact they are still going up.

Feb 28, 2024 03:10 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I also see no signs of this on the immediate horizon as we are still experiencing Scarcity in most of our Price Points 

Feb 28, 2024 06:02 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Not in my market area, as long there are more buyers and less inventory I do not see it happening unless the Fed becomes a bigger jerk than it already is and raises interest rates to 14%.... anyway you get the idea, Endre

Feb 28, 2024 09:01 PM