Over the last few years, home prices have seen an incredible surge. Values skyrocketed. Many people found that their homes were worth two or three times what they had paid for them. And, despite these high prices, the market seemed to move quickly, and there were a lot of buyers.
Unfortunately, this also meant that there were numerous people who felt priced out of the market. They were waiting for home prices to drop so that they could actually afford somewhere to live. Has this continued?
Interest rates have caused a decline
There certainly has been something of a reduction in home prices lately. They are not back to the prices that one would’ve found in 2012, but they are also not growing at the exponential rate that you would have seen just a few years ago.
One of the biggest reasons for this is simply that interest rates have increased. At some points, they have been up over 7%. Gone are the days of locking in a mortgage at 3.5 or 4%. This makes homes dramatically more expensive for those who are buying with a mortgage loan, and that reduced the pool of buyers.
This means that the demand is not so high, so homes have started to stay on the market longer, increasing the overall supply. Some sellers have even decided to drop their prices simply because homes are not moving as quickly as they anticipated.
Of course, housing markets are always going up and down, and the market could change again in the future. Those who are seeking to make a purchase or sale can always help things go more smoothly and avoid costly and time-consuming issues by having experienced legal guidance.