Home prices chill
After a strong summer homebuying season, the housing market is likely to cool off in coming months.
That doesn’t mean buyers will no longer face competition when bidding on homes, or that prices will drop. But the end of warm weather, coupled with higher mortgage rates, will probably slow the housing frenzy, says Robert Dorsey, chief data analytics officer for FNC, a real estate valuation company.
“Price increases, which had been really robust, seem to be slowing down a little,” Dorsey says. “As we go into the fall and winter, there is a seasonal decrease in home sales. The economy has been stagnant and interest rates are increasing. I think there will be reduction in price increases and demand.”
This is good news for homebuyers. While the inventory of homes for sale remains tight, potential homebuyers will get a bit of extra time to find the home they want without the pressure of watching home prices shoot up.
Should you wait and see if prices eventually drop? No, Dorsey says.
“We may have a period of flat prices, but they will likely continue to go up,” he says. “I don’t think home prices in general are going to go down. Plus, you will likely get a lower interest rate today than in six months.”