And the answer to this is the same as any other housing question over the last two-plus years – who knows? After a steady – and often dramatic climb since 2020, not to mention the bidding wars – home prices are now going sideways. Yes, in some areas they are still climbing but at a much slower rate.
The one factor that has changed is the number of buyers. In July, existing-home sales declined nationally by 20.2 percent year over year, and new-home sales dropped by nearly 30 percent.
Analysts see mortgage rates as the key to how fast prices might drop with some seeing a 5 percent decline possible.