There are only two things that could happen that will bring housing prices down:
Lower demand
Higher supply
Tax credits or rebates will not bring housing prices down and neither will lower Realtor commissions. Housing prices keep rising because the demand is high and the supply is low.
We are seeing some relief in multifamily housing due to all the recent new construction of apartment buildings. The supply is higher which means rents are not going up as much.
During the great recession and the housing market crash builders stopped building new houses. The population continued to grow and that drove up demand. There is a lot more new construction now than there was a few years ago. In general there isn’t enough of that middle and lower income housing.
Housing costs contribute to inflation. When inflation rises the federal reserve raises rates which in turn causes mortgage interest rates to rise which makes housing more expensive and that rising cost contributes to inflation. It is a cycle that we don’t seem to be able to get out of.
There is a lot of finger pointing but so far that hasn’t made housing more affordable. The laws of supply and demand can not be ignored.
Housing prices generally do not go down but if they stopped going up that would help the economy and home buyers too.
