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s a real estate professional, I'm often asked when home prices will come down. It's understandable to want more affordable housing options, especially with headlines predicting market downturns and recessions. However, the reality is that home values are stuck at all-time highs due to a combination of factors.

    One major reason is the severe undersupply of homes in the US, which has been a problem for over a decade. After the 2008 financial crisis, homebuilding slowed dramatically and never fully recovered. Restrictive zoning laws and rising construction costs have made it difficult to build new homes at a pace that meets demand.

    At the same time, demand for homes is strong, driven by millennials entering their prime homebuying years. As long as market demand exceeds supply, home prices will remain strong. Inflation also plays a role in keeping home prices elevated, eroding the value of money and making tangible assets like real estate more expensive.

    Selling a home isn't as simple as listing it online and waiting for offers; it comes with significant costs for sellers, including real estate commissions, closing costs, staging expenses, and potential repairs. Many homeowners would rather stay put than take a financial hit, keeping inventory tight and prices steady.

    The rate-lock effect also freezes supply, as millions of homeowners locked in ultra-low mortgage rates during the pandemic and are hesitant to trade them for new mortgages with higher interest rates. Until mortgage rates come down substantially, many homeowners will stay put, keeping inventory tight and prices stable.

    Another factor is that people selling homes are often buying them too, offsetting each other's transactions. Demand for homes has a lot to do with life stages, such as getting married, having kids, relocating for jobs, downsizing, or looking for better schools.

    Homeowners also have an emotional connection to their properties and tend to hold onto them rather than take perceived losses. This is another reason why home prices tend to be sticky, even during economic downturns.

    While a recession might lead some to believe that home prices will drop, most recessions don't result in significant price declines. Historically, home prices have remained stable or even risen during recessions, as layoffs impact lower-income workers who are less likely to be homeowners.

    If you're waiting for a housing crash, you're betting against a trend that has been remarkably consistent over the last 60 years – an average annual appreciation rate of 4.6%. Even if home prices stagnate, interest rates could stay high, impacting affordability more than a small price drop. Renting instead of buying means missing out on years of home equity and inflation will continue making homes more expensive over time.

    If you're trying to decide whether to buy, focus on your own financial situation rather than trying to time the market. Consider different markets, think long-term, and plan to stay in your home for at least five or seven years so that short-term market fluctuations won't matter much.