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Experts weigh in on the incoming home price collapse

Declining home values is not new news, so though a home price collapse isn’t surprising, it’s still a topic of discussion amongst Realtors.

new builds representing housing market bust

We all know that the housing market has been on a roller coaster ride for a while. Now some say we are headed for a complete home price “collapse,” having us heading for a LONG way down from here.

What exactly are the experts saying about the potential “collapse”? According to Axios, the single-family home supply is growing and prices have been dropping for the last nine months at the least. The conflicting opinion in this is that though an overall 20% drop is expected in home prices, it is unlikely that there will as dramatic of a crash as there was back in 2008 during the recession.

Though it absolutely affects a Realtor’s career, a home price collapse can keep us floating through the inevitable recession so many are predicting.

Families or individuals who have been saving for years will still be able to afford homes during that time. There will still be demand for home buying and as long as there is demand, there is the potential for income. If you primarily work with home buyers directly, a sigh of relief may be in order.

However, if you primarily work with sellers, that’s another story. Of course, a price drop is going to compromise how your clients feel about selling their homes. They may want to wait it out to see if they can get a better price after a recession. There is no guarantee they will and quite frankly, if a recession hits, we don’t know how long it’ll last. They won’t be ecstatic about selling their home for below what they believe the market value is, but most likely will still sell if they are really needing to.

This collapse won’t wipe out the market. It may present a challenge but as Realtors, most of us are well-versed in making it work. Overall, I think we are going to see a lot of struggling potential home buyers finally showing up, ready to seal the deal.

A native New Englander who migrated to Austin on a whim, Stephanie Dominique is a freelance copywriter, novelist, and certificate enthusiast. When she's not getting howled at by two dachshunds or inhaling enough sugar to put a giant into shock, she is reading, cooking or writing about her passions.


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