Are you waiting for home prices to crash? You’re not alone—some folks are hoping for it to finally snag a more affordable home. But here’s the deal: the experts are saying it’s not going to happen. Let’s unpack why.

The Supply and Demand Story

Home prices are driven by one simple truth: supply and demand.

Right now, there are far more people wanting to buy homes than there are homes available to buy.

That imbalance is what’s keeping prices high.

Here’s how David Childers, President of Keeping Current Matters, explains it:

“The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.”

How Did We Get Here?

For over 15 years, we’ve been underbuilding homes. After the 2008 housing crisis, new construction slowed way down, and it’s only recently started picking up again. Even so, builders are just trying to keep up with today’s demand—not to mention making up for years of falling behind.

That’s why we’re still seeing a housing shortage, and as long as supply remains tight, prices will stay steady or continue to climb in most areas.

What About Next Year?

Most experts agree that home prices will rise again next year, but at a slower, healthier pace.

That said, prices can vary from one market to another.

In places with more homes for sale, prices could grow more slowly—or even dip a bit. But in areas where inventory remains scarce, prices are likely to keep climbing.

This is why it’s so important to work with a local real estate expert who knows the ins and outs of your market. They’ll help you understand what’s happening in your area so you can make the best decisions.

Bottom Line

What’ll it take for home prices to drop? It all comes back to supply and demand. With inventory still tight in most markets, prices aren’t going down anytime soon.

If you’re curious about what’s happening with home prices here in Rhode Island, let’s connect. We’ll make sure you’re equipped with the knowledge and strategy to navigate this market confidently.