What Will It Take for Prices To Come Down?

Are you wondering if home prices are about to crash? Believe it or not, some people are hoping for this so they can finally buy a more affordable home. However, experts agree that’s not likely to happen – and here’s why.

The demand for homes far outweighs the supply. That imbalance is what continues to drive prices upward.

Let’s explore why, on a national level, home prices aren’t expected to drop anytime soon – and what this means for the Greater Cincinnati, Northern Kentucky, and Southeast Indiana real estate markets.

Prices Depend on Supply and Demand

The housing market functions like any other: when demand is high and supply is low, prices go up.

According to recent estimates, the U.S. faces a housing shortfall of several million homes. In other words, there are far more people searching for homes for sale than there are houses available to purchase. This significant mismatch in supply and demand is the main reason home prices are unlikely to fall.

As David Childers, President of Keeping Current Matters, explains:

“The main driving force on pricing is the limited amount of inventory in most markets across the country. That issue is not going to be solved overnight or in the next twelve months.”

How Did We Get Here?

For over 15 years, homebuilders have been unable to keep up with buyer demand. After the 2008 housing crisis, construction slowed dramatically and has only recently begun to recover (see graph below):

Even as new construction increases, builders are playing catch-up. According to AmericanProgress.org, the current pace of construction isn’t enough to meet today’s demand – let alone address years of underbuilding.

With this ongoing housing shortage, home prices are expected to remain steady or increase in most regions, including Greater Cincinnati, Northern Kentucky, and Southeast Indiana.

What About Next Year?

Most experts predict home prices will continue to rise next year, but at a slower and healthier rate (see graph below):

Keep in mind, however, that home prices vary by market. While national trends are important, your local market’s inventory and demand will ultimately determine whether prices grow slowly, stay steady, or decline slightly.

In areas like Greater Cincinnati, Northern Kentucky, and Southeast Indiana, where inventory remains tight, prices are likely to keep climbing. That’s why it’s essential to work with a local real estate professional who understands these markets and can guide you effectively.

Bottom Line

If you’re wondering when prices will drop, it all comes down to supply and demand. Limited inventory continues to keep home prices steady or rising in most areas.

Whether you’re looking to purchase a home or thinking, “How can I sell my house in this market?” connecting with a local real estate expert is key. They can help you understand what’s happening in Greater Cincinnati, Northern Kentucky, and Southeast Indiana and create a plan that fits your goals.