‘More sellers are cutting their list price.’ Here’s exactly what economists and analysts think will

[libertybele]

‘More sellers are cutting their list price.’ Here’s exactly what economists and analysts think will happen to home prices in the next few months

Mortgage rates still remain near record lows — some 15-year rates are near 2% and some 30-year rates are below 3%, as you can see here — but many potential buyers, worried about the recent rise of home prices, aren’t sure if they should dip their toes into the housing market. So we asked economists and financial pros what they expected to happen to the housing market through the end of this year.

“Monthly home value growth has slowed from its record-breaking pace this summer, inventory is up for the fourth month in a row and more sellers are cutting their list price. This all points to less competition for home shoppers, but make no mistake, the housing market remains clearly tilted in favor of sellers,” says Zillow senior economist Jeff Tucker. Indeed, the latest Zillow market report released in October notes a slight softening in for-sale markets, with monthly home value appreciation slowing for the first time since January. The Zillow report also reveals that inventory of for-sale listings rose for the fourth month in a row, along with more sale listings cutting prices, which is beneficial for home shoppers. Looking ahead, Zillow economists expect the typical home in the US to increase in value 4.7% over the next few months, resulting in an increase of 11.7% by August 2022.

“The frenetic pace in housing may be cooling somewhat, but demand still far exceeds a limited supply of homes available for sale,” adds Greg McBride, chief financial analyst at Bankrate concurs. “Waiting in expectation that prices will fall seems unlikely to pay off,” says McBride. But he says, proceed with caution: “Waiting until you’re not pressured to make an offer on the spot or sight unseen, forego inspections or waive contingencies is a prudent choice,” says McBride. ........

https://www.marketwatch.com/picks/more-sellers-are-cutting-their-list-price-heres-exactly-what-economists-think-will-happen-to-home-prices-in-the-next-few-months-01635260708?cx_testId=22&cx_testVariant=cx_1&cx_artPos=1&mod=home-page-cx#cxrecs_s

[LegalAmerican]

Home warranty means nothing. Inspection is a waste.  When home prices go up, so do RENTS.  TAXES, FIRE INSURANCE.
What goes up, ....will come down.  Been through this before. 

[DB]

When interest rates go up, home prices go down and vice verse. It all comes down to what the payment is to determine what someone can "afford". Lower interest rates allow for a higher mortgage with the same payment amount.

[DB]

I'll add that with the threat of higher interest rates coming there will be a flood of people trying to buy before that takes affect.

[sneakypete]

I am happy for the people who need to get out of rental payments,but my home  has been paid off for more than 20 years,and I can't even begin to imagine what it would take for me to take out a mortgage on it.

I did borrow money on it twice. Once was to buy it to start with,and the other time was to get the cash to put up my work shop,put in a water line, a septic tank,electricy,ac,and heat.

There are damn few things that will scare you more than missing a house payment.

[sneakypete]

I'll add that with the threat of higher interest rates coming there will be a flood of people trying to buy before that takes affect.

@DB

And who can blame them? The additional money you pay over the typical 20 or 30 year mortgage adds up into scary money if you think about it.