One question I hear all the time is: “When are house prices going to drop?”

The truth is, probably not anytime soon. Today's affordability problem wasn't caused by one thing. It's the result of several factors that have been building for years.

It Started After 2008

After the 2008 housing crash, builders dramatically slowed new construction while mortgage lending became stricter. For more than a decade, the U.S. simply didn't build enough homes to keep up with demand.

That housing shortage was already developing before COVID ever happened.

Then COVID Accelerated Everything

During the pandemic, construction costs increased, supply chains were disrupted, and labor shortages slowed new construction.

At the same time, mortgage rates fell to historic lows, giving buyers significantly more purchasing power.

Low supply + high demand = rapidly rising home prices.

So Why Haven't Prices Come Back Down?

Higher mortgage rates have definitely cooled the market from the frenzy of 2021 and 2022, but they haven't fixed the underlying supply problem.

Inventory has improved, but construction costs remain elevated, insurance has become more expensive, and desirable, well-priced homes can still sell quickly.

That's why higher rates haven't automatically resulted in dramatically lower home prices.

What Does This Mean for Buyers?

I wouldn't recommend trying to wait for the “perfect market,” because honestly, the perfect market doesn't exist.

The better question is whether buying makes sense for you.

Your finances, monthly payment, goals, timeline and overall situation matter more than trying to perfectly predict where home prices or interest rates will go next.

That's why one of the first conversations I have with buyers isn't about finding a house.

It's about creating a plan.

Whether you're ready to buy now or simply want to understand what it would take to get there, I'm always happy to help you look at the numbers and figure out your next step.