We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies.More info
Berkshire Hathaway HomeServices Hodrick RealtyBerkshire Hathaway HomeServices Hodrick Realty
  • Buy With Us
  • Sell With Us
  • Search for Homes
  • Buy + Sell Guide
Ask Us Anything

About

  • Meet the Team
  • Success Stories
  • Read Our Blog
  • Join Our Team
  • Our Sold Gallery

Services

  • Our Services
  • Buy With Us
  • Sell With Us
  • Our Marketing

Berkshire Hathaway HomeServices Hodrick Realty

448 River Avenue, Williamsport PA 17701

  • 570-321-7000
  • [email protected]

Nationally, Home Sales are Up and Prices are Down: What Now?

Home sales are up. In February, total home sales in the U.S. rose 14.5% from the month prior. That jump ended a 12-month...

  • Becky Shaible
  • April 6th, 2023
  • 4 min read
Featured Image

Home sales are up.

In February, total home sales in the U.S. rose14.5%from the month prior. That jump ended a 12-month streak of declines in national home sales, and it’s the largest percent increase since July 2020. The sale of new construction homes has also increased, withnumbers upfor the third straight month in February. 

Inventory, or the number of homes available on the market, is still low in most areas, and mortgage rates are still high—so why are home sales spiking now? While 14.5% feels like a large increase and does indicate a change in the market, it’s important to note that sales are still down year-over-year. Low affordability and low inventory drove sales down dramatically last year, so the increase we’re seeing now is more of a correction than a true spike.

Home prices are coming down.

The National Association of Realtors also just reported that home prices have dropped0.2%year-over-year.

Less than one percent? Why does that matter? That number may not seem like a lot, but it’s significant because it’s a departure from a consistent stream of price increases. This is the first time in almost 11 years that home prices have shown an annual decrease.

Does that mean the market is going to crash? Not quite.

Driven by the ultra-low inventory and extreme demand of pandemic-era homebuying, home prices recently reached all-time highs. The current decrease is simply a correction from those sky-high prices, a relaxation of extremely tight market conditions—and a result of high mortgage rates.

But what’s to prevent prices from continuing to drop—and even heading into crash territory? Inventory across the country remains low. There’s only a 2.6-month supply of homes in the U.S. at the current rate of sale, compared to the balanced-market benchmark of a 6-month supply. Additionally,mortgage rates are starting to come down, which will increase buyer competition. Generally, those two factors drive enough demand to prevent a severe drop in home prices.

What does that mean for you? It depends on where you live, and whether you’re looking to buy or sell. In some regions, prices are dropping even faster while in others, prices are holding steady (or even continuing to climb).

Should you jump into the real estate market now?

The answer to that question is complex and depends largely on your personal situation. 

Overall, buyers should take advantage of slipping mortgage rates and dropping prices. If your finances are in order and you’re ready to buy your dream home, low inventory shouldn’t stand in your way—and if you have the right real estate agent, it won’t. Just remember, if you want to buy now, you’ll need to come in with a strong offer and be ready to negotiate.

Selling a home? Let’s do it. As mortgage rates come down, buyers who have been sitting on the sidelines will jump in, and it will be easier for your real estate agent to find the perfect match for your property. Just remember, while most regions of the country still favor sellers and most sellers have seen their home values skyrocket, your expectation for your sale price should look a little different this year than it might have in 2021 or 2022. What’s the perfect price to attract buyers? Let’s talk about it.

We’ve got this.

Navigating the real estate market amid shifting conditions and recession fears can be tricky, but we’ve got your back. Whether you’re looking to buy, sell, or you just want to know what your home is worth these days, get in touch. We can’t wait to make your goals a reality. Fill out the form below to get started.

Author Photo
About the author

Becky Shaible

570-321-7000
Becky's passion is marketing and her wide range of experience from retail management to accounts management helps her everyday.

Similar posts like this

Adaptable Homes: Designing for Multi-Functionality in Northcentral PA

Read more

House Hunting Fatigue? Here’s How to Stay Focused in Northcentral PA

Read more

Why Your First Week on the Market Is Crucial in Northcentral PA

Read more
Berkshire Hathaway HomeServices Hodrick Realty

Berkshire Hathaway HomeServices Hodrick Realty

448 River Avenue, Williamsport PA 17701

Berkshire Hathaway HomeServices Hodrick Realty

448 River Avenue, Williamsport PA 17701

570-321-7000
[email protected]
  • Services
  • About
  • Careers
  • Success Stories
  • Search for Homes
  • Blog
  • Marketing
  • Mortgage Calculator
  • Virtual Real Estate
  • Contact
  • Our Sold Gallery
Subscribe to our list

Join 1000's of people getting our emails

*We respect your inbox. We only send interesting and relevant emails.

Berkshire Hathaway HomeServices Hodrick Realty © 2025

Privacy Policy
Powered by
© 2024 BHH Affiliates, LLC.
An independently owned and operated franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal Housing Opportunity.