Most home sellers will try to sell their house for months (or years) before thinking their price might be wrong. As a result, there will need to be a long stagnant period before there is any chance of prices going down, market-wide.
Results will vary by neighborhood!
Are current home prices going to continue their recent upward trend, have they peaked or are prices in decline? Our readers are starting to lean toward a peaked home-price situation compared to their general beliefs one year ago.
In our recent poll, we asked where current real estate prices are headed. A solid 48% of readers believe prices are on their way up (a belief down from 55% one year ago). But in a shift from last year’s poll, 38% say prices have already reached their peak (one year ago 26% thought prices had peaked). Only 12% today think prices are going to drop (this was 18% last year).
In total, half of our readers believe prices are more likely to rise, while the other half does not expect prices to increase at all. A 50:50 split, signaling a shift as voters begin to see the price bounce from two years ago finally approach its end.
Unsurprisingly, predictions have altered course over the past year as prices have continued to climb but at a decelerated pace — perhaps prompting more readers to suspect the recent upward price trend is nearly over. In 2014, 56% of voters correctly predicted the continued price inflation.
These poll responses closely mirrored the actual trend as home prices did increase over the past year. However, today, readers are much less confident that home prices will continue their current inflationary path, now expecting prices to stagnate in the near future, or drop.
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