When Will House Prices Go Down?

Key Takeaways House prices are unlikely to go down on a national level, but they should grow more slowly. It’s normal for house prices to steadily rise over time – it’s actually abnormal when they fall and can signal a broader economic issue, like a recession or correction. Home prices surged during the pandemic as buyers took advantage of ultra-low mortgage rates, leaving prices elevated today. In a few Sun Belt cities like Austin and Nashville, prices are falling after the pandemic boom left them inflated. It’s no secret that housing today is expensive. Home prices are 20% higher than they were five years ago, while mortgage rates have almost doubled. A shortage of inventory, spike in inflation, and surge in demand during the pandemic have been the leading reasons, pricing many consumers out. Thankfully, the housing market has begun slowly leveling out, and most economists say that affordability will improve over the next few years. House prices are unlikely to fall, but they should grow more slowly, helping wages catch up. So, if you’re a homebuyer stuck on the sidelines wondering if house prices will ever go down, this article is for you. We’ll break down why prices are unlikel...