When Will House Prices Go Down?

"House prices aren't going to fall on a national scale any time soon-and that's actually a good thing. It's normal for house prices to rise gradually over time, just as a mild inflation rate is healthy for most economies. The difference is when prices jump all at once like they did during the pandemic housing boom, which sidelined most buyers and sellers. Now, though, affordability is starting to increase because wages have been increasing faster than housing costs since late 2025."

"The pandemic-era economy threw the housing market into overdrive before it fell back down to earth. One result of this was a surge in home prices, which have remained stubbornly ever since-straining budgets and keeping many buyers and sellers on the sidelines. According to Redfin data, the typical homebuyer has had to spend well over 30% of their income on housing since March 2022."

House prices are unlikely to decline nationally and steady appreciation is economically normal; abnormal price drops signal broader economic problems like recessions. Pandemic-era ultra-low mortgage rates caused a housing boom that inflated prices, which remain elevated today. While most economists expect continued gradual price growth, affordability is beginning to improve because wages have grown faster than housing costs since late 2025. Some Sun Belt cities like Austin and Nashville experienced price declines after pandemic-driven overvaluation. Limited housing inventory and insufficient supply remain primary factors keeping prices elevated, with typical homebuyers spending over 30% of income on housing since March 2022.

Read at Redfin | Real Estate Tips for Home Buying, Selling & More