Why aren’t home prices dropping despite the economy tanking?
Why aren’t home prices dropping despite the economy tanking?
Home prices aren't dropping despite economic struggles due to several factors that continue to support housing demand. Low housing inventory is a major reason; with fewer homes available for sale, competition drives prices up. Additionally, interest rates have been kept relatively low over the past few years (until recently), which makes borrowing more affordable, helping to maintain strong demand in the housing market. Many homeowners also prefer to stay in their homes to avoid higher interest rates on new loans, further limiting available supply. Moreover, there has been continued investment in real estate from institutional buyers, keeping prices stable despite broader economic challenges.