What’s Going on with Home Prices? Ask a Professional.
If you’re thinking about buying or selling a home on Martha's Vineyard or elsewhere this year, you may have questions about what’s happening with home prices today as the market cools. In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of home price moderation will depend on factors like supply and demand in each local market.
That means, moving forward, home price appreciation will continue to vary by location, with more significant changes happening in overheated areas. Here’s a quick snapshot of what the experts are saying:
Danielle Hale, Chief Economist at realtor.com, says:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
Mark Fleming, Chief Economist at First American, says:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Taylor Marr, Deputy Chief Economist at Redfin, says:
“For those bearish folks eagerly awaiting the home price crash, you'll have to keep waiting. As much as demand is pulling back supply is as well reducing downward pressure on prices in the short run.”
John Paulson, Founder of Paulson & Co., says:
“It’s true – housing may be a little frothy. So housing prices may come down or they may plateau . . .”
What Does This Mean for Martha's Vineyard?
We have seen a slow down similar to other markets. We still have much less inventory than we did pre-pandemic and demand is strong, but buyers are being extremely careful about not overpaying now. Interest rates have been a bit of a deterrent but with many cash sales here, properties that are priced well are still going under contract right away. The idea of testing a price and hoping that the house will sell for more than what comparable sales are showing is not a good strategy in the current market. These homes are definitely sitting and we're seeing quite a bit of price reductions.
Because the demand also varies depending on the price point and location of properties on Martha's Vineyard, the very best way to get the answers you need is to lean on a local real estate advisor. They’ll be able to explain the latest trends in your specific town and neighborhood so you can make a confident and informed decision on your next step toward buying or selling a home.
Bottom Line
If you have questions about what’s happening with home prices today, let’s connect so you have the latest on our local market.
