{"id":5252,"date":"2024-12-10T11:30:00","date_gmt":"2024-12-10T11:30:00","guid":{"rendered":"https:\/\/sandpointrealtyidaho.com\/blog\/2024\/12\/10\/what-will-it-take-for-prices-to-come-down\/"},"modified":"2024-12-10T11:30:00","modified_gmt":"2024-12-10T11:30:00","slug":"what-will-it-take-for-prices-to-come-down","status":"publish","type":"post","link":"https:\/\/sandpointrealtyidaho.com\/blog\/2024\/12\/10\/what-will-it-take-for-prices-to-come-down\/","title":{"rendered":"What Will It Take for Prices To Come Down?"},"content":{"rendered":"\n
\"What\n

You may be wondering if home prices are going to crash<\/a>. And believe it or not, some people might even be hoping this happens so they can finally purchase a more affordable<\/a> home. But experts agree that\u2019s not what\u2019s in the cards \u2013 and here\u2019s why.<\/p>\n

There are more people who want to buy a home than there are homes available to purchase. That\u2019s what drives prices up.<\/em><\/strong><\/p>\n

Let\u2019s break that down and explore why, nationally, home prices aren\u2019t going to be coming down anytime soon.<\/p>\n

Prices Depend on Supply and Demand<\/strong><\/h4>\n

The housing market works like any other market \u2013 when demand is high and supply is low, prices rise.<\/p>\n

According to the latest estimates<\/a>, the U.S. is facing a housing shortfall<\/a> of several million homes. That means there are far more people looking to buy (demand) than there are homes for sale (supply). That mismatch is the key reason why prices won\u2019t fall at the national level. As David Childers, President of Keeping Current Matters<\/em> (KCM), puts it<\/a>:<\/p>\n

\u201cThe main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.\u201d<\/em><\/p><\/blockquote>\n

How Did We Get Here?<\/strong><\/h4>\n

For over 15 years, homebuilders haven\u2019t been building enough homes to keep up with buyer demand. After the 2008 housing crisis, homebuilding slowed significantly, and it\u2019s only recently started to recover<\/a> (see graph below<\/em>):<\/p>\n

\"a<\/a>Even with new construction on the rise over the past few years, builders are playing catch-up. And according<\/a> to AmericanProgress.org<\/em>, they\u2019re still not even keeping up with today\u2019s demand, let alone making up for years of underbuilding.<\/p>\n

And as long as there\u2019s a housing shortage, home prices will remain steady or increase in most areas.<\/p>\n

What About Next Year?<\/strong><\/h4>\n

The majority of experts agree prices will keep rising next year, but at a much slower, healthier pace (see graph below<\/em>):<\/p>\n

\"a<\/a>But it\u2019s important to note home prices vary by market. What happens nationally might not reflect exactly what\u2019s happening in your area. If your local market has more inventory available, prices could grow more slowly or even decline slightly. But in areas where inventory remains tight, prices will keep climbing \u2013 and that\u2019s what\u2019s happening throughout most of the country. That\u2019s why it\u2019s crucial to work with a local real estate expert who understands your market and can explain what\u2019s going on where you live.<\/p>\n

Bottom Line<\/h3>\n

If you\u2019re wondering what it\u2019ll take for prices to come down, it all goes back to supply and demand. With inventory still limited in most markets, prices are likely to remain steady or rise.<\/p>\n

To see what\u2019s happening with home prices where you live, connect with a local real estate expert. They can help you understand your market and make a plan that works for you.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"

You may be wondering if home prices are going to crash. And believe it or not, some people might even be hoping this happens so they can finally purchase a more affordable home. But experts agree that\u2019s not what\u2019s in the cards \u2013 and here\u2019s why. There are more people who want to buy a […]<\/p>\n","protected":false},"author":1,"featured_media":5253,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-5252","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/sandpointrealtyidaho.com\/blog\/wp-content\/uploads\/2024\/12\/20241210-What-Will-It-Take-for-Prices-To-Come-Down-original.png?fit=750%2C410&ssl=1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pdz2Zu-1mI","_links":{"self":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/5252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/comments?post=5252"}],"version-history":[{"count":0,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/posts\/5252\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media\/5253"}],"wp:attachment":[{"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/media?parent=5252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/categories?post=5252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sandpointrealtyidaho.com\/blog\/wp-json\/wp\/v2\/tags?post=5252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}