In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand.
With the continued imbalance between supply and demand, home prices are expected to keep rising, albeit much more slowly than in the past. Inventory will grow steadily in the coming years from more home construction, and various life-changing events will require people to trade up, trade down or move to another location.
The latest jobs report showed an increase in the unemployment rate to 4.1%, which was exactly what we were hoping to see!! This indicates that the labor market is cooling slightly, expected to put downward pressure on interest rates. For homebuyers, this means we’re forecasting lower rates soon, making it a great time to explore your home financing options.
When it comes to the real estate forecast for the next 5 years, I’m cautiously optimistic. I believe we’re going to see a lot of ebb and flow over the next 5 years — some highs, some lows, but overall, a healthy market. Prices should continue to rise, though more slowly, and buyers might enjoy more options as inventory expands.
– Dennis Shirshikov, Adjunct Professor of Economics, City University of New York
Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.
The housing market—like so many other markets—is almost impossible to time. The best time for prospective buyers is when they find a home that they like, that meets their family’s current and foreseeable needs and that they can afford.