Why Prices Won’t Go Down Anytime Soon
Why you should worry about buying in today’s market.
We talked with a buyer recently who said, “I’m going to wait to buy until the market changes.” We asked them what type of changes they were looking for, and they said they wanted lower prices. That’s an interesting response, so let’s talk about what would have to happen for prices to drop.
There’s only one way it could happen: We would need to see a massive surge in inventory. The most recent recession was back in 2007, and there are a few reasons why we saw so many houses for sale back then. We built way too many homes nationally. On top of that, we had a lot of predatory lending practices, which ultimately led to foreclosures.
Those two factors pushed the home supply way above the demand. The demand for homes has stayed relatively the same throughout various recessions; there was simply too much inventory.
"If you’re worried about a bubble, we would say, ‘What bubble?’"
In today’s market, we aren’t seeing short sales, we don’t have predatory lending, and we have not overbuilt. In fact, we are short millions of new construction homes across the country. That’s why prices likely won’t come down anytime soon.
If you’re worried about buying at the top of the market or that a bubble is about to burst, to you we say, “What bubble?” Let’s have a conversation about what’s happening in our hyper-local market so that you can make the best decision for your family.
If you have any questions, feel free to call or email us. Let us know what topics you’d like us to cover in future videos as well so that we can bring our advice to you.