Due, in part, to the ongoing inventory problem keeping home prices elevated, many economists predict the housing market is more likely to correct itself from the double-digit percentage jumps seen in home prices the past few years rather than crash.
Home prices should stay steady in most parts of the country with a minor change in the national median home price. However, some housing market watchers believe that homes in some areas could see sales and price growth, particularly in locations where home prices have remained affordable over the past few years in relation to median income.
Analysts are estimating about a 5% drop nationally. Some markets, believe it or not, will probably see prices continue to increase.
Home prices will see gains or declines depending on the region, with lower-priced locations likely to experience price increases and expensive areas seeing dips.
Some experts point out that today’s homeowners also stand on much more secure footing than those coming out of the 2008 financial crisis, with a high number of borrowers having positive equity in their homes. Consequently, the likelihood of a housing market crash is low. Homeowner equity is at the highest level it’s been in the past several decades, so homeowners have a lot of value in their home.
In a housing market crash, you would typically see a 20% to 30% drop in home prices and a decline in home sales—far more than what’s currently happening. Another crash symptom that’s been missing is a jump in foreclosure activity.
I think we’re more likely to see the market cool, rather than crash.
Recognized as one of the most dynamic, high performing real estate agents in the Chicagoland area, Frank Campobasso is in a league of his own having been featured as the cover agent for an international Real Estate Magazine, Multiple Newspaper Articles and on Real Estate Radio Talk Shows. He specializes in marketing and selling listings for top dollar, negotiation techniques, researching and finding properties that otherwise wouldn’t exist on the market for his buyers. Licensed in 2005, Frank has been selling Real Estate for almost two decades. To Reach Frank, please call 773-425-6265.