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Could Home Prices Dip This Spring? Key Market Signals to Watch

Writer's picture: Neil CaronNeil Caron

At ReadySetLoan, we’ve been tracking the shifting housing market closely. Recently, we noted that the inventory of unsold homes is on the rise. At the same time, home sales have slowed as buyers face 7% mortgage rates. Now, new data suggests that national home prices could turn negative this spring, marking the first year-over-year price declines since early 2023.

While some markets across the country have already seen price drops due to rising inventory, overall home prices remain higher than they were a year ago. In fact, certain areas—like New York state—experienced notable price gains in 2024, thanks to persistently low inventory levels.

However, recent data from Altos Research indicates that more markets are softening, with fewer areas experiencing price growth. If this trend continues, we could see average home prices dip below last year’s levels.

There are many ways to track home prices, and while no single measure tells the whole story, most metrics are showing a slowdown in appreciation. After a brief surge in home prices a few months ago, growth has flattened—and in some cases, prices are starting to slip. The primary culprit? High mortgage rates, which continue to challenge affordability for many buyers.

For those in the market to buy or sell, staying informed about these trends is crucial. At ReadySetLoan, we’ll keep you updated on the latest housing market insights to help you make confident decisions on your homeownership journey.



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