Many homes initially priced too high are now being adjusted to align with actual market conditions.
This doesn’t mean home prices are falling across the board, but rather that they were initially listed above market value.
These price adjustments present an opportunity for buyers, as many of these homes are now more realistically priced. Well-priced properties move quickly, so don’t let the days on market mislead you—there are excellent opportunities to be found here!
Why Slower Inflation Doesn’t Necessarily Mean Lower Prices…
It’s important to clarify that the recent price adjustments mentioned above do not indicate a broad market decline.
In many cases, properties were simply overvalued from the outset. Similarly, while inflation is easing, this doesn’t mean we should expect prices to fall dramatically in other sectors of the economy.
The Federal Reserve’s main objective is to balance inflation and unemployment, and they do this by adjusting the Federal Funds Rate, which is closely linked to key economic indicators like the 10-year Treasury rate.
As inflation cools and approaches a more manageable level, many assume prices will start to drop. However, this simply means that prices are rising at a slower rate, not that they are falling.
While prices may stabilize or increase more gradually, they are unlikely to return to the levels of previous years. The economy is adjusting, and while some prices might drop slightly, it’s important to recognize that current price levels are likely the new normal for most goods and services.
