6 leading real estate economists and pros on what to expect from the housing market this winter
Prediction 1: Mortgage rates will “continue their downward trek”
With the Fed switching to a smaller rate hike in February, mortgage rates will continue their downward trek, and a lower mortgage rate improves affordability, bringing more buyers back to the market.
Prediction 2: Home price gains will slow even further
The growth of median asking prices for homes nationwide eased back into single-digits in December for the first time in 12 months and nearly held that pace moving into January.
Home price gains will slow even further in February.
Prediction 3: Buyers have more room to negotiate
A surging number of homes for sale may not mean falling home prices, but it is enabling buyers to gain back a measure of negotiating power and along with a longer time on market compared to a year ago, buyers are more likely to see homes with a list price that has been lowered below original asking price.
Prediction 4: The market is on a slow path to normalcy
We are far from out of the woods with the affordability crisis that has been weighing heavily on home sales, but we are starting to see some green shoots pushing up as prices and mortgage rates have fallen.