11/04/2025
Anyone else notice home prices going down? Maybe you've seen price drops and wondered what's going on?
There's a few factors contributing to this:
1. List prices remained on the high end of home value, post-pandemic.
Because of the high-demand and very low interest rates during the Covid Pandemic, house prices went up!
However, even with property values appreciating, homes have been overpriced. One figure I saw showed that on average, homes have been priced about 8-9% over market value. Homes that are listed too high, will sit on the market longer than homes priced just right. So, you may see some homes have a price drop after sitting on the market for a long time.
2. Interest rates have remained fairly stable, although a downward trend is starting to show.
Many buyers are wanting to wait for the "right rate" to lock in and buy a home. With news of rates coming down, many people want to wait until "the time is right". Rates have been around 6.5%, going up or down a bit. Recently, we have seen rates go as low as 6.17% as of the end of October. With less buyers in the market, homes will sit longer, driving many sellers to lower their list price.
3. Inflation
We can't ignore that the cost of living will have an impact on the real estate market. If buyers are struggling to save money to put towards buying a home, few buyers will in the market, and the one who are will be looking for the best value for the home they buy. As for the sellers, some may not be able to afford making repairs that could affect the price of the home.
So, lots of negotiating going on!
4. Current market.
If homes similar to yours are selling for below list price (because of one or more of the above listed reasons) that can affect the list price for your home and others like it.
If you made it to the end of this, thanks for reading! And, if you'd like to talk more about this with me and see what your home is worth, give me a call!
678)983-2050
Jessica Kimbrough, REALTOR®
Keller Williams Metro North
Alabama’s real estate market is changing.
More than two thirds of cities, towns and counties in Alabama saw price drops from January to September, mirroring a trend seen throughout the southern and western United States, according to data from real estate company Zillow.
Prices were down in Jefferson County, home to Birmingham; Madison County, home to Huntsville, and Mobile County.