Why Are Home Prices Still Rising?
If you are one of the many home buying hopefuls, you’ve likely been watching prices creep upward and wondered how long they can continue to climb.
The housing market is always a challenge to predict, but as long as inventory remains low and buyer motivated, the inflation of home values is likely to continue. Home values have gone up by over 20% over the last year and are expected to rise nearly as much again by 2023.
Beginning earlier this year, mortgage rates began to creep up from the historically low pandemic rates. As of March 1, the national average 30-year fixed-mortgage rate was 4.30 percent, up from 3.78 percent in February.
While rising mortgage rates may slow demand for housing as some buyers are priced out of the market, in the short term, rising mortgage rates will pressure some to buy sooner rather than waiting. With inventory low and competitiveness high among buyers, the market isn’t looking to slow down any time soon, especially as the spring selling season approaches.
The good news is, if you’re ready to buy now, an experienced real estate agent can help you create a plan to find your dream home and make the most out of your money in this challenging market.