Housing Market Still Challenging for Buyers Despite Early Signs of Cooling as High Rates Persist

Home prices are starting to ease as more inventory comes on the market and more sellers drop prices, providing some relief for buyers.

However, buyers are still facing high mortgage rates, climate change driving up insurance costs, and potential for further price drops.

High rates have kept homeowners locked into low rates from selling, reducing supply and keeping prices up. This may change if rates stay high.

If prices start falling significantly, it will hurt sellers and erode home equity for all owners, even if not selling.

The housing market likely won't rebound until rates drop, so "rock bottom" isn't here yet for most in the housing market.