Why Haven’t Home Prices Dropped?

I’m often asked, “If there are more Sellers than Buyers right now, why haven’t home prices dropped?”

It seems logical that higher interest rates, slower sales, and more inventory would force sellers to lower their prices. But there’s another factor at play:

Many Sellers simply don’t have to sell.

Some homeowners are moving because they want to—not because they have to. Others are comfortable working remotely and no longer need to live close to their jobs.

And many homeowners are sitting on mortgage rates around 3%. Giving up that low rate to take on a much higher payment can be a tough decision, especially when they already have substantial equity.

There’s another trend affecting the supply of entry-level homes: some homeowners are keeping their first homes as rental properties when they move up rather than selling them. That means those homes never make it back onto the market.

So, Where Is the Opportunity for Buyers?

While many Sellers are holding firm, some Sellers do need to sell. Those homeowners may be much more willing to negotiate on price, closing costs, or other concessions.

That can create opportunities for Buyers who are prepared to make a strong, reasonable offer.

The takeaway? Don’t assume a home is out of reach just because of the asking price. Work with your real estate agent, understand the market, and make an offer that makes sense for you.

You may be surprised at what a motivated Seller is willing to do.

Happy House Hunting!
Jay Atterstrom
📧 [email protected]
📞 (214) 377-0033