Part 8/12:
Market analysts are closely watching whether the rising inventory will exert downward pressure on home prices. As supply outpaces demand, particularly when homes stay on the market longer, price reductions are expected, although widespread declines are not guaranteed. For now, many professionals believe that home prices will largely slow their appreciation rather than drop dramatically.
A key factor influencing future dynamics is mortgage rates. Simson highlights that around 6% on a 30-year fixed mortgage could unlock substantial demand, with an estimated 5.5 million households being able to afford homes if rates drop to that level. Conversely, if rates stay high or increase, market activity could stagnate further.