Where are home prices headed?

It is unquestionably difficult to make a sound determination about whether to sell or purchase a home at any given point in time when it is particularly unclear what the market will do next. When the residential real estate market is relatively stable, it’s not too challenging to make informed decisions about one’s options. But, when the market is volatile, it can feel like every decision one could make is potentially unwise. 

Over the past few years, the market has soared, cratered and experienced much of the grey area between these poles. At present, both mortgage rates and home prices are very high, scaring off many would-be buyers and leaving many would-be sellers unsure of whether to list or sit tight. So… what’s next?

Cautiously competitive conditions

Interestingly, although home sales have been dragging for months and hit a six-month low in July, demand remains high. The result? A cautiously competitive market that is catering to those who can afford to pay extra and making it particularly tough for those who can’t see a light at the end of the tunnel. 

Essentially, this is the kind of market – and all signs point to the likelihood that it will remain this way for some time – that does not inspire any “hard and fast” rules for all sellers or buyers. Instead, the situation is such that some sellers and buyers are in very strong positions to get exactly what they want, while others would be unwise to make any moves unless absolutely necessary. 

If would-be sellers and buyers have questions about what they should do next, seeking legal guidance is always an option. After all, when it comes to real estate, knowledge is power.