Majority Of Buyers Say Prices Have Hit Their Peak

As home prices have recovered over the past several years, prospective buyers have become increasingly concerned about affordability conditions. After all, buying a home is a major financial commitment and getting less house for your money isn’t ideal. But things may be changing. In fact, a recent survey of active home shoppers found that a majority think prices may have hit their peak. According to the results, 56 percent of respondents said they don’t expect prices to climb any further. That’s good news for buyers, as slowing prices and steadier mortgage rates would help improve affordability conditions. But though home shoppers were confident that prices wouldn’t go much higher, they also expressed concern that a recession was on its way – with 30 percent of participants expecting it to begin sometime next year. Danielle Hale, the chief economist for the National Association of Realtors’ consumer website – who commissioned the survey – says home shoppers may be expecting a recession but it hasn’t made them pessimistic about the housing market. “When the U.S. enters its next recession, it is unlikely that the housing market will see a sharp nationwide downturn,” Hale said. “The same record low inventory levels that have made buying a home so difficult recently, will likely protect home prices in the next recession.” More here.

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