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]

When Will Home Prices Come Down?

As the market continues to shift, more and more questions are being asked about how home prices will behave in the coming...

  • Becky Shaible
  • August 3rd, 2022
  • 4 min read
Featured Image

As the market continues to shift, more and more questions are being asked about how home prices will behave in the coming months. Will home prices continue to rise, or will they finally start to come down? If you’ve been interested in selling your home and/or buying a new one but have been intimidated by the fast-moving market, you’re in the right place. This post will explore real estate market conditions and when we may start to see home prices drop.

Rising Interest Rates: What They Mean for the Real Estate Market

The cost of buying a home skyrocketed by more than 20% across the country in April of this year compared to last year. In some cities, that number was even higher, including:

  • 34.8% in Tampa
  • 32.4% in Phoenix
  • 32.0% in Miami

The red-hot real estate market conditions were caused by a few factors, including the Covid-19 pandemic and ensuing Great Resignation, limited inventory, and historically low interest rates. Interest rates are now on their way back up — while this may not sound like the best news for home sellers or home buyers, it does mean the market has started to settle. In fact, rates are expected to rise to 5.7% by the end of the year. These increased costs are putting pressure on the housing market. 

According to the Mortgage Bankers Association, there has already been a steep drop in mortgage applications. The drop was so significant that it pushed the market index down to its lowest level since 2000.

About 20% of home sellers dropped their prices during the month of May, but that doesn’t signify a serious shift in the market quite yet. Although the real estate market conditions are cooling, that doesn’t mean you can expect significant drops in home prices overnight. Most experts agree it will be at least 2023 before we see home prices drop.

Will the Housing Market Crash?

There have been a lot of murmurings online and in social circles that we may be heading towards another 2006-style housing market crash. Most experts are not anticipating this kind of “bubble burst.” 

Instead, Capital Economics predicts we’ll see a 5% drop in home price growth by the middle of next year. Then, they expect a gradual recovery to happen to 3% annual price growth by the end of 2024.

Should I Wait for Real Estate Market Conditions to Improve?

Since there are no signs of a chaotic downturn in the housing market, if you are interested in selling your home, you should not wait. Start the process now! Remember, there’s a lot that goes into selling a home — getting it deep cleaned, de-cluttered, and staged, fixing broken appliances and cosmetic issues, finding a real estate agent, listing the home, preparing the home for showings, having an inspection and appraisal and fixing issues these processes find — and the list goes on. 

If that list seems excessively long, it’s because the process can be arduous. So, there’s no need to wait. Get ahead of it and get started now! As the market slows down, it is taking longer for homes to sell — they are still selling fast, but we’re not seeing people lined around the block, and multiple above-asking price cash offers roll in like we were a few months ago. 

If you’re a home seller, it’s also important to list your home before the real estate market conditions change and prices drop. This is key so that you can make the highest profit possible on your home. If you wait too long, you risk missing out on full-price offers that will likely be a thing of the past when the market changes later this year and into next. 

The bottom line is that continued supply shortages and high buyer demand mean that now is a great time for home sellers to list their homes before prices start dropping significantly as interest rates continue to rise.

We Can Help

Whether you’re a home seller or a home buyer looking to navigate these turbulent real estate market conditions, our team of expert real estate professionals can help. We are skilled at negotiating home prices and working with clients during volatile times.

Let's Talk

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

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

Dream Backyards of 2025: What Luxury Homebuyers Want 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.