Housing Markets Needed Transition
Despite higher mortgage rates and an increase in housing supply, property values have continued to rise but at a slower pace. If mortgage rates remain elevated in the months ahead we should expect home prices to decline further and it would not be a surprise to see a sizable decline in some previously overheated markets.
Leading into 2022, home prices were growing beyond 20% per year, which was unsustainable. The current slowing in housing was necessary and healthy for the longer-term market and, it would be ideal to see home prices see single-digit gains per year, which is what many housing experts forecast.
In these uncertain times, opportunities are everywhere. New home builders are now offering attractive incentives to lure prospective buyers and there are plenty of mortgage loan programs available to help people finance a new opportunity.
Please reach out to us if you need help locating a lender that can show you what your options are in the current market.
Sources: WSJ.com, Realtor.com, Tradingeconomics.com, Guy Vetrano