What’s Going on with Home Prices? Ask a Professional
If you’re thinking about buying or selling a home this year, you may have questions about what’s happening with home prices today as the market cools. In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of home price moderation will depend on factors like supply and demand in each local market.
That means, moving forward, home price appreciation will continue to vary by location, with more significant changes happening in overheated areas. Here’s a quick snapshot of what the experts are saying:
Danielle Hale, Chief Economist at realtor.com, says:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
5 Reasons the Housing Market is Not About to Crash
Housing economists point to five compelling reasons that no crash is imminent.
- Inventories are still very low: The National Association of Realtors says there was a 3.2-month supply of homes for sale in August. In February, that figure was as low as a tiny 2.0-month supply. This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.
- Builders didn’t build quickly enough to meet demand: Homebuilders pulled way back after the last crash, and they never fully ramped up to pre-2007 levels. Now, there’s no way for them to buy land and win regulatory approvals quickly enough to quench the demand. While they are building as much as they can, a repeat of the overbuilding of 15 years ago looks unlikely. “The fundamental reason for the run-up in price is heightened demand and a lack of supply,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “As builders bring more available homes to market, more homeowners decide to sell and prospective buyers get priced out of the market, supply and demand can come back into balance. It won’t happen overnight.”…
Should I Buy a Home Now or Wait Until 2023?
Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in.
Use a mortgage calculator to estimate your monthly housing costs based on your down payment and interest rate.
Trying to predict what might happen next year is not the best homebuying strategy. “Buyers sitting on the sidelines today in anticipation of lower prices tomorrow may end up disappointed,” says Neda Navab, President at Compass.
Navab expects home prices in some expensive markets and other areas that saw substantial price gains over the past few years may decrease somewhat, but she doesn’t expect a widespread, national price decline like that of the 2008 financial crash.
So, instead of waiting for much lower prices, buy a home based on your budget and needs. If you find a home you love in an area you love, and it also fits your budget, then chances are it might be right for you. However, if you make too many sacrifices just to get a house, you may end up with buyer’s remorse and an expensive albatross you might have to offload.
Tips for Buying in a Hot Housing Market
Start with a budget and stick with it. Even with a slight uptick in the number of homes for sale, buyers are still facing elevated prices and mortgage rates nearing 7%.
Ralene Nelson, REALTOR®
FOR SALE – 689 Waterwood Dr, Rio Vista
2 bed/2 bath/1,837sqft/5,436sqft lot
$585,000 – Breathtaking views as you step into this beautiful home, located on the 11th green & pond. Popular Reflect model with quartz counters, white cabinets, 5 burner gas stove top & refrigerator are included. Tile floors with carpet in bedrooms. A double-sided gas fireplace makes for a cozy den & living room. The primary bath has double sinks with a walk-in shower with w/bench seating. Shutters throughout the home. Walk out either slider onto the covered patio that is the full length of the home. Small piece of turf for your pet, low maintenance landscape (front & back) & fenced. The backyard is lovely & a great place for a BBQ. Washer/dryer are included & there’s a laundry tub in the garage. Prepaid solar lease, transferrable to the buyer for the remaining years of the lease. Just bring your furniture and enjoy all the amenities, such as 2 swimming pools/spas, bocce ball courts, tennis & pickle ball courts, horseshoes, billiards, a library, a computer room, etc. So many activities to enjoy, you can be as busy as you want or idle. There is a club for just about all your hobbies. READ MORE
FOR SALE – 181 Cedar Ridge Dr. Rio Vista
2 bed/2 bath/1,433sqft
$540,000 – Look no further!! This Clipper model is like a new home, completely renovated, from new sheet rock to all new cabinets throughout, new baths, laminate flooring, quartz counters, appliances, and new interior & exterior paint. Located on the 11th fairway, bring some patio furniture & enjoy the scenery. This model provides a living room/dining room & a nook/great room. Trilogy provides so many amenities, including 2 swimming pools/spas, bocce courts, billiards, tennis courts, pickleball, gym & more. READ MORE
FOR SALE – 295 Sage Meadows Dr. Rio Vista
PRICE CHANGE – 718 Allender Wy. Rio Vista
3 bd/2 bth/1346sf
FOR SALE – 1536 Michigan St. Fairfield
3 bed/2 bath/1,260sqft/4,792sqft lot
PRICE REDUCED – 623 California St, Rio Vista
2 bed/1 bath/934sqft/4,792sqft lot
Price Reduced to $395,500 – Adorable cottage/bungalow, 2 bedroom, 1 bath and has been updated. Larger backyard with patio & raised garden beds for your vegetables. The kitchen has been remodeled & there is an inside laundry & single car garage. Convenient location, walk to town for breakfast, snack, and/or dinner. READ MORE
Events in Northern California this Weekend
Home for the Holidays, Holiday Concert in Sacramento
Sat, Dec 10, 2 PM
Sacramento Memorial Auditorium, 1515 J St, Sacramento
“Home for the Holidays”, an annual sell-out holiday concert will be held on Saturday, December 10th at 2 PM in the newly renovated Sacramento Memorial Auditorium located downtown. The 170-member choir alongside a full orchestra will feature a festive holiday singalong, and holiday classics, along with guest artist Salvatore Atti (Tenor) and The Green Valley Theater Company Puppets. Fun for the whole family & concert-goers will be invited to sing along to the various holiday classics such as “Jingle Bell Rock”, “Winter Wonderland” and more, to fill the auditorium with holiday cheer! READ MORE
Sacramento Santa Parade
Sat, Dec 10, 10 AM – 12 PM
California State Capitol Museum, 1315 10th St, Sacramento, CA
The parade heads west from 14th and N and turns right on 10th past the west side of the Capitol, then it makes another right onto L Street heading east.
Parking: city garages at 10th and L or 10th and I Streets READ MORE
Mystery of the Christmas Star, Sacramento
Sat, Dec 10, 1 PM
Sacramento State Planetarium, 6000 Jed Smith Dr, Sacramento, CA
Come join us as we explore the fascinating field of astronomical transients. Transient objects are temporary visitors to our night sky – things that appear and then disappear again. This can include things like comets, meteor showers, novae, and supernovae. With our understanding of these transient phenomena, we will turn back the astronomical clock over two thousand years and get a glimpse at what the night skies looked like around the time of the birth of Jesus of Nazareth and see if we can use our knowledge to try and decipher the Mystery of the Christmas Star! READ MORE
Annual Candy House Construction Party
Sat Dec 10 2022 at 1:30 pm
Reader Robin, 2036 West Sonoma Avenue, Stockton
Making candy houses has been our family tradition for over 40 years. Now we welcome you to participate in this delightful celebration of the season. With graham crackers, candy and hot cocoa, this free event is appropriate for kids of all ages. Please bring a bag of candy to share and a box of graham crackers for each participant. We look forward to seeing all of you. READ MORE
The Nutcracker, Gallo Center in Modesto
Gallo Center for the Arts, 1000 I St, Modesto
Central West Ballet’s The Nutcracker celebrates its 35th Anniversary! New sets and designs will make your holidays memorable and enchant you like never before! Follow Clara’s adventure to the Land of the Sugar Plum Fairy and see all the characters you love! Don’t forget our Sugar Plum Fairy Parties on stage after select matinées where children can meet their favorite characters! The Nutcracker—always new and always magical in the hands (and feet) of Central West Ballet! READ MORE