Home Prices Falling Despite Buyer Demand
Home prices are falling even though buyer demand remains high according to recent surveys; however, it is unclear what effect this will have on overall home prices going forward and whether or not buyer demand will remain strong enough to keep them afloat despite rising inventory levels.
Dec. 24, 2022 9:22PM
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A picture of a "For Sale" sign outside a house with a graph showing declining home prices below it.
As the housing market continues to struggle in the wake of the pandemic, home prices are falling even though buyers still outnumber sellers in most areas. According to a survey of over 1000 resale agents conducted in November, inventory is dropping faster than expected. The National Association of Realtors reported that existing home sales fell 7.7% last month from October to a seasonally adjusted annual rate of 4.09 million. This news has been met with mixed reactions from both buyers and sellers alike. On one hand, potential buyers may be able to get better deals on homes as prices drop, but on the other hand, sellers may have difficulty finding willing buyers for their properties at current market rates. The available supply of single family homes on the market fell by 2.5% this week to 521,000 due to both withdrawals and sales; however, this hints that the most bearish housing scenarios are not yet reflected in data points such as these. It remains unclear what effect this will have on overall home prices going forward and whether or not buyer demand will remain strong enough to keep them afloat despite rising inventory levels.