Will US housing prices finally drop in 2024-2025?

I have been tracking the housing market for months, but prices in many states seem to remain stubbornly high despite rising interest rates. Is there any consensus on when we might see a meaningful correction or a dip in home values? I am currently saving for a down payment but feel like I am being priced out of the market entirely. I would appreciate any insights from those currently looking or industry experts on whether waiting is a viable strategy.

The issue is low inventory. Even with high rates, sellers who locked in 3% mortgages are refusing to sell, which keeps prices propped up. I wouldn't bet on a massive crash anytime soon.

I've been waiting for two years and honestly, I've started looking abroad. If you have the capital, you might want to look into the best real estate investment options in 2024? because the US market feels like a bubble that just refuses to burst.

Don't try to time the market. If you are buying for the long term, focus on your monthly payment rather than the total price. Trying to wait for a dip often results in missing out on equity growth.

Many experts are predicting a 'soft landing' where prices stay flat rather than dropping. If inflation cools, rates might tick down, which will just bring more buyers back into the market and keep prices high.

I’m in the same boat. It’s incredibly frustrating. I’ve shifted my focus to researching international markets where my savings go much further. I recently read about which countries offer residency by real estate investment in 2024? and it was eye-opening.

Real estate is local. While national averages are high, some mid-sized cities in the Midwest are seeing price corrections. You might need to look outside of major coastal hubs if you want to get your foot in the door.

The consensus among most analysts I follow is that we will see stagnation, not a crash. Supply is just too tight across the country to allow for a significant drop in values.

Keep saving. Even if prices don't drop, having a larger down payment will protect you if rates stay high. Don't feel pressured by FOMO; buying a house you can't afford is worse than waiting.

It really depends on the Fed's next moves. If they start cutting rates, demand will likely skyrocket, pushing prices even higher. If you can afford the current payments, waiting might actually cost you more in the long run.