Good news now for homebuyers?
Private home prices have finally fallen for the first time since Q2 2023, The Straits Times reported. According to URA flash estimates, prices dipped by 1.1% in Q3 2024, reversing a long running uptrend that had persisted in spite of elevated interest rates.
Now is this good news for homebuyers, and is it indeed a “buyer’s market” now, given that this is but one data point that has gone south against many, many other data points that have been climbing up the index? In Q2 2023, the price index dipped by 0.2% but was immediately followed by a 0.8% uptick in the following quarter, and then by another 2.8% increase in Q4 2023.
Since Q1 2020, when the price index was at 152.1, private home prices have gone up to 206.1 in Q2 2024, representing a substantial 36% rise in prices. The drop in Q3 2024 means that prices have softened, and could continue to do so – but what it doesn’t mean is that private homes are now cheap.
Additionally, despite the US Fed’s recent announcement, interest rates remain at historically high levels. Households contemplating a condominium should continue to work out their finances carefully, especially their ability to service mortgage loans over the long term.
And it’s probably a tad too early to assume that we are now in a buyer’s market.
#IREUS #PrivateHomes #PrivateHomePrices #Residential
