--- title: When Will Home Prices Fall? Here’s What Experts Predict description: Here's what experts say about skyrocketing house prices, and when they'll go back down to normal. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Kristen Bahler role: Managing Editor url: https://money.com/author/kristen-bahler/ bio: Kristen Bahler has spent more than a decade turning culture, work and consumer spending trends into conversation-driving stories. Today, she leads Money's sponsored content channel and reader-favorite franchises like Best Places to Live and Best Places to Travel. education: Northeastern University, MA Journalism at_money_since: 2016 articles: 52 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://www.linkedin.com/in/kristen-bahler/ published: '2022-06-01T17:16:04.000Z' modified: '2024-01-10T13:13:12.000Z' section: Housing tags: - News word_count: 456 canonical: https://money.com/when-will-home-prices-fall/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![A Pair of Scissors About To Cut A Price Tag Attached To A Small House](https://img.money.com/2022/06/News-House-Price-Cuts-Coming-Soon.jpg) Soaring [mortgage rates](https://money.com/current-mortgage-rates/), tremendous demand and limited inventory are pushing home prices up, but some experts say relief is on the way. Just not in the near future. Home prices grew 20.6% year-over-year in March, the fastest annual surge in 35 years, according to [a report](https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-reports-annual-home-price-gain-of-206-in-march/) released Tuesday by S&P Global. In some cities, that number is even higher: Tampa (34.8%), Phoenix (32.4%) and Miami (32.0%) saw the largest price gains. The data, which comes from S&P's CoreLogic Case-Shiller Index, tracks the value of single-family housing in the U.S. It gets reported on a two-month delay, and prices continued to rise beyond the month of March, albeit at a slower pace. The median sales price of an existing home (not new construction) in April was $391,200, according to [data](https://www.nar.realtor/newsroom/existing-home-sales-retract-2-4-in-april) from the National Association of Realtors (NAR). That’s 14.8% higher than in April 2021. Experts generally agree that prices this high, combined with mortgage rates above 5% and soaring inflation, are not sustainable in the long term, since they price so many buyers out of the market. Soon, sellers will have to adjust. “As buyer confidence sags and weighs down demand, real estate markets will re-balance, eventually tilting away from the heavy advantage that recent home sellers have enjoyed,” Realtor.com Chief Economist Danielle Hale wrote in a [blog post](https://www.realtor.com/research/case-shiller-home-prices-mar-2022/) this week. ## When will home prices fall? Nearly 20% of sellers [dropped their prices](https://money.com/more-home-sellers-dropping-asking-prices/?ref=/housing-market-not-cooling/) during the four weeks ending on May 22, according to [data](https://www.redfin.com/news/housing-market-update-price-drops-surge-to-19pct/) from Redfin. But that doesn't mean that houses are getting more affordable just yet. Because mortgage rates are so high, the monthly payment on a home listed at the median asking price was $2,425 during that same period — $717 higher than a year prior. Buyers looking for [newly built homes](https://money.com/cities-with-the-most-new-homes/) also face historically high construction costs thanks to supply chain issues and material shortages. Mark Zandi, the chief economist at Moody’s Analytics, predicts prices will eventually flatten across most of the country, especially in the hottest housing markets of the pandemic era — like Boise, Colorado Springs, Las Vegas and Phoenix. “Sky-rocketing house prices are set to come back to earth as higher rates crush affordability,” [Zandi tweeted](https://twitter.com/Markzandi/status/1531610375292059648) last week. For now, those waiting to buy until the market cools will have to keep biding their time. “Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call,” Craig Lazzara, Managing Director at S&P Dow Jones Indices, said in a [news release](https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-reports-annual-home-price-gain-of-206-in-march/). ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/when-will-home-prices-fall/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "When Will Home Prices Fall? 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