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
Leatherman HomesLeatherman Homes
    Ask Us Anything
    Follow us

    Who We Are

    • Meet Our Team
    • Read Our Blog
    • See Our Reviews

    Who We Serve

    • Explore Our Services
    • Buy With Us
    • Sell With Us
    • Search for Homes
    • See Our Marketing Strategy

    Leatherman Homes

    25 S Village Avenue, Rockville Centre, NY 11570

    • (516) 984-1815
    • [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...

    • Kevin Leatherman
    • November 1st, 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

    Kevin Leatherman

    (516) 984-1815
    • facebook
    • X
    • instagram
    • linkedin
    • youtube
    • pinterest
    I was raised in Commack, attended grades K-12 and graduated from Hofstra University with a Bachelor of Business Administration Degree in Banking & Finance. While having a successful career selling & trading Foreign Exchange for top Wall Street firms, I pursued my true passion by attending a real estate broker licensing course at New York University. Upon receiving my real estate broker’s license I opened my real estate agency. Shortly afterward, business flourished, and I was able to resign from my full-time position on Wall Street.

    Similar posts like this

    How to Buy a Home in 2023

    Two major challenges in the real estate market for buyers right now are high mortgage rates and low inventory. Let’s take...

    Read more

    How to Find a Home in Your Preferred School District

    If you have kids who are school-aged or about to be, you’re probably thinking about your school district. If there’s a particular...

    Read more

    7 Must-Read Real Estate Tips for Expecting Parents

    Being an expecting parent can be a wonderful and exciting time, but it can also be stressful. There are so many details to...

    Read more
    Leatherman Homes

    Here to provide exceptional service.

    Leatherman Homes

    25 S Village Avenue, Rockville Centre, NY 11570

    Leatherman Homes

    25 S Village Avenue, Rockville Centre, NY 11570

    (516) 984-1815
    [email protected]
    • Our Services
    • Buy With Us
    • Sell With Us
    • Meet Our Team
    • Our Reviews
    • Our Blog
    • Contact Us
    • Our Marketing
    • Search for Homes
    • Get My Home's Value
    • Mortgage Calculator
    • Sold Gallery
    • NYS Housing Discrimination Disclosure Notice
    • NYS Standard Operating Procedures
    Join Our Email List:

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

    Leatherman Homes © 2025

    Privacy Policy
    Powered by