Do we think housing prices will drop?

I know it doesn't look home prices will drop any time soon due to lack of inventory but when do we think things might level off? I keep looking and most home are going to contract within days of listing. Any realtors/mortgage experts in here care to give insight?

Re: Do we think housing prices will drop?

On LI there are more people than single family homes. There is no extra land to build and expand. For those reasons I really don’t see substantial declines. Leveling out, absolutely. If there is rampant inflation I could see people selling because they cannot afford a home. I also don’t think there will be a massive baby boomer sell off. Their children will inherit and likely move into those homes, or use it as rental income. When covid came, it showed older boomers what nursing home life was like and they are all modifying their homes to age in place.

Do we think housing prices will drop?

Nope. I don’t think so. Prices still are rising by me (depending on the house) and selling for 20-30k over asking. My coworker is looking and his in laws live in mastic/mastic beach area. He was over his wife’s house and the house next door was listed for $449 and sold for $520k. His jaw dropped. Im north shore close to stony Brook and a few houses in my neighborhood all have sold over asking, nothing even at asking since the summer.
I don’t necessarily think prices will ever come down to where they were pre covid but rather level off to where they are now; realistically only time will tell.
The only good thing is mortgage rates are up a bit from their historic low but still hovering around 3% which is awesome but not good for buyers since it drives up prices/ demand

Message edited 2/15/2021 2:35:06 AM.

Re: Do we think housing prices will drop?

Agree with whats been said. There are huge demographic shifts away from cities now, and those will likely continue.

Re: Do we think housing prices will drop?

I think eventually but not any time soon.

I feel like it’s what happened years ago prices were crazy but then went back down and people were in positions where they couldn’t sell their house cause they wouldn’t get anywhere close to what they paid.

I do think that will happen again but who knows when.

Do we think housing prices will drop?

Houses will continue to appreciate. Maybe not at the ridiculous percentages we saw last summer/fall. But will they drop? Not in any area deemed "desirable".

Re: Do we think housing prices will drop?

I don't think so, it's been a sellers market for a while, even before COVID, and while the prices have been going up they aren't overinflated and insane like years ago. Of course the housing market is cyclical so at some point it will naturally swing the other way but I don't see that happening anytime soon.