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4 Long term Pricing Developments For The Housing Market!

4 Long term Pricing Developments For The Housing Market!

 Since, we have experienced, perhaps, one of the most prolonged, steep price increases, in housing prices, several seem to wonder, will this continue, and, if so, for how long, and then, what! Since, traditionally, real estate prices fluctuate, and, often, it is demanding, to correctly, predict, trends, and, certainly, there is no such thing, as a crystal – ball, anytime it comes to developing such predictions, it is wise to try to steer clear of any attempt to marketplace – time! After over 5 years, as a Real Estate Licensed Salesperson, in the State of Florida, I believe, and realize, there are, at minimum, four probable pricing trends and possibilities. Having said that, this post will try to, review, and share, 4 trends concerning the residential housing market.

 

  1. Will the current rates continue to climb?: 

Most doubt real estate prices, will, progress rising, at this speed, for a long period, into the future! Numerous factors created, somewhat of, a perfect storm, related to what we have noticed, for about a year! The psychological stresses, and issues, emulating against this horrific pandemic, a need to make certain changes in lifestyle, and a need to steer clear of, delaying, as well as close to record – low, home loan interest rates, have contributed, as well as, in certain, notable, geographic areas/ regions, Supply and Demand, issues, which, created a Sellers Marketplace, have accelerated this process, and results!

 

  1. Climbing, however, at a slower, more gradual rate?:

 Might pricing continue growing, however, more slowly? At some level (and many, believe, we have already witnessing, some evidence), many potential, experienced buyers will find discouraged, and, if this is combined with more homeowners cashing – in, and selling, at a slower pace!

 

  1. Will rates level – off?: How far will the long term cooling of this market go?

 Will we see, rates, level – off, and for a period (adjustment period), generate pricing, more stable, and even? When interest rates, ultimately, increase, as it seems will occur, probably, in 2022, what will that do to rates, and perceived prices, because high rates mean increased monthly expenses, etc?

 

  1. Will rates decrease, and, if so, why, and for how long?:

 Since, rates escalated so rapidly, and so much, could they decrease, at some point? Although, traditionally, home value goes up, with inflation, this increase was not significantly related to inflation! Although it is possible, we will see a reduction, most believe, it will most likely, level – off, and turn out to be, more like, we witnessed, historically, so any period of falling rates, will, most probably, be somewhat short!

Since, for most, their house signifies their single – most important, individual financial asset, doesn’t it make sense, for future homeowners/ buyers, to grow to be better – educated buyers? Will you pay more attention to the options and realities?