If you’ve ever fantasized about owning a home or upgrading your current one, you’re familiar with the emotional rollercoaster that fluctuating home prices can cause. It’s a story that many people have experienced about financial aspirations, concerns, and a touch of dread.
However, if you decide to delay moving because you are concerned that property prices may decrease, make no mistake—they are not. In actuality, the reverse is true.
Prices for homes increased considerably. Those growth rates were abrupt and unsustainable.
So, prices saw a correction in the second half of the year and began to decline. However, even minor decreases were fleeting and superficial. However, the media particularly highlighted those drops in their headlines, which made consumers fearful and apprehensive.
But this is what hasn’t been adequately discussed. So far in 2023, prices are once again rising, although at a slower rate. The fact that all three studies show more usual or average price appreciation this year is good news for the housing market following price rises that were excessively high and the corrections that occurred in 2022.
Why Are Home Prices Increasing Now?
Because there are still not enough houses available for sale to accommodate all the individuals who want to buy them, property prices are once again rising.
The supply of available homes decreases as a result of increasing mortgage rates, which also causes a moderating of buyer desire. That is a result of the influence of the mortgage rate lock-in. When interest rates increase, some homeowners are hesitant to sell and give up their present cheap mortgage rate in order to move into a home with a higher rate.
As a result, the supply and demand balance for the housing market has changed as a result of increasing mortgage rates, which affect both buyers and sellers. However, because there are still more individuals interested in buying homes than there are houses available to buy, prices are still rising.
Here’s How This Impacts You
Buyers: If you’ve been holding off on purchasing a property because you were concerned about its worth declining, hearing that home prices have increased again should help. You have the opportunity to possess something that typically increases in value over time when you purchase a home.
Sellers: It can be a wise decision to deal with a real estate agent and place your house on the market if you have been putting off selling your home because you were concerned about how shifting home prices would affect its value. The most recent data shows that housing prices have changed in your favor, so you don’t have to wait any longer.
If you put off relocating because you feared home prices could decline, evidence indicates they are rising nationwide. Consult Anthony Loffredo Real Estate Group to learn more about the local real estate market.