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After years of historically high home prices, the market could start to cool off

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Posted at 6:16 AM, Nov 22, 2022
and last updated 2022-11-22 06:44:06-05

After a few years of historically high home prices, the market may start to cool off.

Home prices are up about 45% of what they were in 2020 and 85% higher than 2017. Experts said that they expect the prices to slow down.

“We are probably going to see a pricing downturn in the next 30, 60, 90 days at most," real estate economist Ken H. Johnson said.

He said that will not be a drastic drop in prices.

“When we look at it through time, it’ll probably be a lateral move. Look at it on a graph. It’ll probably be three to four years of relatively flat, slightly downward prices,” Johnson said.

Lauren Swoboda is a real estate agent with Compass Real Estate in Tampa. She said she is already starting to see prices level off.

“Due to the supply and the demand, we are not expecting any sort of crash to come, especially not what we saw in 2008,” Swoboda said.

With many people moving to the Sunshine State, the inventory of homes is low. Johnson said construction is not keeping up with the number of people moving here.

"There was a huge oversupply of housing 15 years ago. Today, there’s a huge shortage," he said.

Hillsborough County still sits in a seller's market.

To compare home prices to previous years, click here.

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