Your Prediction On Home Prices

Lee

Lee

Senior Member
Location
Chatham, Ontario
The busy spring home market is almost here. Last year saw multiple bids on homes and over asking price sales.

While some predict a further downturn, I think this year may see again a hike in sales and value, maybe not to the extent of a year ago but still a hike.

I believe that those who are looking to sell will not be willing to come down much in price as they remember what they could have got a year ago. And buyers will get used to the higher interest rates but scale down what they can afford and become more realistic in their expectations.
 

I agree Lee but also think houses are going to float on the market longer before a sale. I believe sellers are going to continue to think they can get inflated prices, thus pricing their home too high intially and then refusing to to lower their asking price, until they have to. Buyers are going to approach purchases a bit more cautiously than a year ago, no more panic buying.

I don't think interest rates are to a point that will scare buyers away, and I don't see that changing dramatically in the next couple of years.
 

Your Prediction On Home Prices​

A few years ago prices were soaring
I see it leveling off

Seems a lot of folks pay little attention to price/interest rates
They don't even care about a fixed rate
They center on affordability at present
Hoping to refinance down the road.....and pay off their credit debt
I don't see that hopeful outlook happening

We stumbled into an old house in 2005
Put $20K and sweat into it
Sold it moments before the 2008 crash
Doubled our money

Whatever happens, it'll be interesting
 
Housing prices have been out of control for 3 decades IMO...I
see no chance that will change, given how much PROFIT the
builders and sellers want these days...it is about PROFIT remember that....
 
Things are still expensive here. I do not need to be in this large house but the price of even a small home is ridiculous now. The market for small older homes got out of hand when people realized that was the only option for them. I do not live in a fancy area but it is a very nice neighborhood for families. If and when the time comes I will have no problem finding a buyer. The homes in this area are sought after and when one comes on the market it is sold within a few days, usually in a bidding war.

I could not even afford to move into a one bed/one bath apartment that would be cheaper than my current home. Insurance and taxes are cheaper than rent. I at least know my home after 30 years, I know what has been done, what has been replaced or maintained over that time.

I think it all depends on the part of the country you are in. Texas, right now is having an influx of out of state people. The cost of living appeals to many looking to relocate. This applies to people retiring and young people/families. For the young people/families there are plenty of good jobs, good schools, excellent medical care for all ages.
 
Alligatorob said:
In the long run so long as our population continues to grow land prices, and building materials will go up. Shorter term is harder to predict, its always up and down.

I've been thinking it would be down for the last year or so, but no evidence of that so far, not here anyway.
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I’ve got to agree. You’d think the prices would be dropping but they aren’t here. They stayed where they were.

It seems since the pandemic everyone has put the prices up and used that as an excuse to do so. If everything continued to go up including building materials then house prices aren’t going to drop too much. (in my opinion)
 
Blessed said:
Things are still expensive here. I do not need to be in this large house but the price of even a small home is ridiculous now. The market for small older homes got out of hand when people realized that was the only option for them. I do not live in a fancy area but it is a very nice neighborhood for families. If and when the time comes I will have no problem finding a buyer. The homes in this area are sought after and when one comes on the market it is sold within a few days, usually in a bidding war.

I could not even afford to move into a one bed/one bath apartment that would be cheaper than my current home. Insurance and taxes are cheaper than rent. I at least know my home after 30 years, I know what has been done, what has been replaced or maintained over that time.

I think it all depends on the part of the country you are in. Texas, right now is having an influx of out of state people. The cost of living appeals to many looking to relocate. This applies to people retiring and young people/families. For the young people/families there are plenty of good jobs, good schools, excellent medical care for all ages.
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Yes, Texas is seeing a huge influx. I see so many out-of-state tags now in Dallas, and the drive time to anywhere has doubled. We have lots of Californians moving here due to the lower cost of living, which has actually become relatively high. I see big, new houses going up on lots adjacent to really busy intersections and think "who would want to live there?" But there really isn't a lot of land to build on in Dallas proper. I saw a news article that indicated real estate sales in the Dallas area have dropped 20% within a year.

I do think the market will settle as interest rates continue to increase. Unfortunately, I think many first-time home buyers are being priced out of the market. I don't see any For Sale signs immediately replaced with Under Contract signs as I did a year ago. Houses are definitely sitting on the market longer.
 
Everywhere you look around Denver and its suburbs you see these mammoth, newly built apartment buildings and more being built, yet the housing shortage persists. At some point, the market has to reach a point of equilibrium where there's enough housing to meet demand. Who knows when that day will come.

There's also a worker shortage, which is driving up wages, which is fueling inflation. That could end as AI becomes more ubiquitous and starts eliminating jobs, at which time people will start losing their homes. We'll see higher unemployment and more homelessness. The price of houses will fall dramatically, but I think we're still a few years away from the housing market collapse. Give it five or so years.
 
Supply and demand. If new homes are not being built, it eventually forces up the prices of ALL homes.

The US has never built enough new SFH or apartment/condo construction that would satisfy demand. When the pandemic/lockdown happened, even that inadequate amount of new construction went into freefall. So now we're two years behind a pent-up demand that couldn't be met even at the time it was occurring.

Also, do not forget that the percentage of homes owned by corporate interests who profit from increased rental demand, has risen dramatically over the last ten years.

Prices fluctuate naturally over time, but the fact remains: add in climate change, where coastal communities are facing erosion - and you have a lot of people who are looking for housing that simply isn't being built in sufficient numbers to satisfy their needs.

I don't get excited over our home value rising or falling 20%. It is what it is, and over time it may - or may not - become more valuable. But it's meaningless, until we actually go to sell.
 

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