What’s the outlook on the housing market?

Massive foreclosures incoming!! Keep saving your money and then strike in 2 years!

I believe the housing market is highly localized. We are seeing houses sit on the market for longer but prices haven’t come down yet. The buyer pool shrank dramatically and immediately with the rate changes.

Prices have been dropping in BR for a few months now.. but I do think a year from now could be a better time to buy.

Dallas area isn’t seeing the prices fall off yet but we are finally out of a 20+ competitive bid environment for a house 5 days on the market. We went on multiple years of selling above ask so houses selling at list and sitting on the market for 45-60 days is healthy to see.

Not being critical but some people can’t read charts

As a buyer, winter is generally a better time for you. Inventory is coming up so selection is going to be better.

Builder’s are discounting prices and offering incentives. Sellers are having to drop prices because of competition from more inventory. Now through February should be good, but don’t wait past another rate hike by the Fed.

I've got a new born and balancing our next move, too.

3 factors I'm looking at in Texas.
Rates
Home prices
Buyer competition/inventory

I think Q423 - Q124 will be the time to make a move.

At this point houses are actually less affordable (because of interest rates) than they were in the first half of 2022 when prices peaked.

The median housejold income and costs of ownership are just mismatched with the percentage of total income a buyer has to devote to mortgage etc almost 40% of total take home.

I think higher rates are going to be here for a while. By that I mean several years and possibly for the foreseeable future.

At the end of the day; the Fed knows what ultimately fueled this bubble and inflation was very low interest rates and effectively free money for a decade plus.

It’s about reshaping America’s relationship with money. Let’s not forget that home loan rates only 30 years ago were often as high as 14%. That’s double todays 7% 30yr. I think we loosen up rates with time; but, we may even see another increase in the short term. Eventually settling back to 4.5-6% in 24’ or beyond.

The other part people don’t seem to talk about is the number of homes selling for cash. In my part of the world (Tampa) almost 60% of home sales are straight cash. All these people claiming a crash is impending are overlooking the fact that in many cases there is no mortgage to become distressed.

So, in your situation I’m still thinking about buying. I agree with others that there will be some better home price bargains next year. As for the rates; lock it in. From a historical perspective they aren’t that high even now; and if they do fall you can always ReFi.