What Will It Take for Home Prices To Come Down?
Are you waiting for home prices to drop before making your move? You’re not alone. Many buyers are hoping for prices to decrease, but the reality is that experts agree: prices aren’t going to crash. Here’s why.
The Key to Home Prices: Supply and Demand
The housing market follows a simple rule: when demand is high and supply is low, prices go up.
Right now, we’re facing a housing shortage of several million homes in the U.S. That imbalance—more buyers than homes available—is what’s keeping prices steady or rising.
As David Childers, President of Keeping Current Matters, explains:
“The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.”
So, what does this mean for buyers and sellers?
Why Supply is Limited
After the 2008 housing crisis, homebuilding slowed dramatically. For over 15 years, builders didn’t keep up with demand. Even as construction has picked up in recent years, builders are still playing catch-up. According to AmericanProgress.org, they’re not meeting today’s demand, let alone making up for years of underbuilding.
This means that, for now, prices aren’t going down.
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What About 2025?
While most experts predict that prices will continue to rise next year, it’ll happen at a slower and healthier pace. Of course, prices vary by market.
That’s why working with a local real estate expert is crucial. A professional who knows your market can help you understand how these trends affect your buying or selling strategy.
When it comes to navigating the complexities of the Los Angeles housing market, our 41+ years of experience make us the team you can trust.
Our team uses a proven pricing strategy and a hard-hitting advertising plan to ensure your success. Whether you’re buying your first home or selling to upgrade, we’ve got you covered.
Bottom Line
If you’re wondering what it’ll take for prices to come down, the answer lies in supply and demand. With inventory still limited, prices are unlikely to drop anytime soon.
Whether you’re looking to buy or sell in Los Angeles, let’s connect. We’ll provide the insights, strategies, and local expertise you need to make confident decisions.
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