Are you wondering if home prices might crash? Some buyers are crossing their fingers for more affordable options, but experts agree: that’s not likely to happen anytime soon. Here’s why.
The Supply and Demand Puzzle
Home prices, like anything else, are driven by supply and demand. Right now, there are far more people wanting to buy a home than there are homes available. This imbalance is what’s keeping prices steady—or even pushing them higher.
David Childers, President of Keeping Current Matters (KCM), 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.”
Why the Shortage?
For over 15 years, homebuilders haven’t been building enough homes to meet demand. After the 2008 housing crisis, construction slowed dramatically and hasn’t fully caught up. Even with new construction picking up recently, builders are still just trying to keep pace with today’s needs, let alone recovering from years of underbuilding.
As long as we’re facing a housing shortage, prices are expected to remain stable or rise in most areas.
What About Next Year?
Most experts predict that home prices will continue to rise in 2024, but at a slower, more sustainable rate.
However, real estate is local. If inventory increases in a specific area, prices could level off or even dip slightly. On the flip side, in markets where inventory remains tight, prices will likely keep climbing—just like here in Orange County.
That’s why it’s so important to work with someone who knows the Irvine real estate market inside and out. Understanding what’s happening in your neighborhood can make all the difference in your real estate decisions.
Let’s Talk About Your Options
If you’re curious about home prices in Irvine or anywhere in Orange County, I’d love to help you navigate our local market. Whether you’re buying or selling, let’s make a plan that fits your goals.
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