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
Beach Properties Real Estate Group, LLCBeach Properties Real Estate Group, LLC
  • Buy
  • Sell
  • About Us
  • Arazzo
Contact Us

About

  • Our Blog
  • Our Services
  • Our Marketing
  • Client Testimonials
  • Arazzo

Services

    113 Monument Ave., Port St. Joe, FL 32456

    • 850-227-2500
    • [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...

    • Kaye Haddock
    • August 5th, 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

    Kaye Haddock

    8502276600
    • facebook
    • instagram
    • youtube

    Similar posts like this

    Blog

    Charter Boats in the Cape San Blas, Mexico Beach and Port St. Joe Areas

    Photo from the Port St. Joe Marina The areas around Port St. Joe, Cape San Blas, Indian Pass, Windmark, St. Joe Beach,...

    Read more
    Blog

    5 Key Features That Increase Your Home's Value

    Ask anyone the first rule of real estate and they’ll likely respond, “location, location, location.” Why is that? Location...

    Read more
    Blog

    The Features That Sell a Home in 2023

    What sells a house in 2023? As years change and trends come and go with evolving lifestyles, buyer priorities also fluctuate....

    Read more
    Beach Properties Real Estate Group, LLC

    “Committed to Your Success!”

    113 Monument Ave., Port St. Joe, FL 32456

    113 Monument Ave., Port St. Joe, FL 32456

    850-227-2500
    [email protected]

    Live The Beach Life

    • Search for Homes
    • Meet the Team
    • Client Success Stories
    • Get Your Home's Value
    • Read Our Blog
    • The Buyer Experience
    • Our Marketing Strategy
    • Schedule a Call
    • Mortgage Calculator
    • Port Saint Joe, FL Real Estate
    • Cape San Blas, FL Real Estate
    • Read Our Blog
    Join Our Email List:

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

    © 2025

    Privacy Policy
    Powered by