1) there is currently a shortage of houses in many places and a surplus in a few. In the places of surplus they will fall. In the areas short they will reflect the job situation and stay strong. 2) the cost of building a home is way more than buying a used home. Zoning, permits, the cost of well septic or hooking up to the existing grid is a gut punch compared to just a decade ago. Add to that all the new environmental laws and codes and the cost to build will keep prices up. 3) for every skilled blue collar man retiring they are being replaced by two. That is driving up wages of those who can only produce what their bodies can do in a day can only do so many bricks, roof shingles, toilet installs or brake jobs. Their salaries will always buy them a middle class house so that is the benchmark for pricing. 4) Traditionally people moved up, raised their kids in a big house and then downsized opening up their old home for a younger family to raised their kids. Because the cost of building is so high no one is building homes for retirees anymore and these folks are staying in their big houses till the die or finally move to florida or a nursing home.
Basically, home prices may dip but the cost of building new is going up not down which means that housing is a sound investment, although you need to wait and for a lull in prices and interest rates if you have a decent place to live now.
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