Our perspective on rising home prices in this strong seller’s market.

A common question we’re hearing lately is, “Are houses overpriced?” Today we’re answering that question by digging deeper into the past, present, and future of our market’s pricing trends.

There is a lot of noise surrounding the housing market right now. Between local news, ads, and social media, it can become overwhelming. We want to bring you the facts so you can benefit from the opportunities available today.

You’ve more than likely heard the buzz that we’re in a seller’s market. That means there’s a shortage of homes for sale based on the demand from buyers. Much of this has to do with a decrease in new home builds. When demand is high for a product, the cost increases. At 1:07 in the video above, you can see how the monthly housing inventory affects home prices.

The opportunity to receive multiple offers and sell for top dollar in this strong seller’s market is great news for homeowners. However, there is always the fear of “What will I do next? What if I can’t find a home to buy, or what if I have to pay too much?”

“Owning continues to be more affordable than renting in most areas.”

Home prices are in line with gradual appreciation year over year this century. At 1:40, you can see how prices have increased steadily since 1991, even with a housing crash in the early 2000s. Home values are projected to increase by 5.2% in 2022. The next few years will see a much more modest appreciation, not bottom out like some assume.

With all this talk about home prices and the market, you should also know that it’s a great time to purchase a home. You can take advantage of the current interest rates before they climb later this year, as they're predicted to do. Even with rising prices, you still have excellent buying power in this market because interest rates are so low. For every 1% rates go up, buyers lose 10% in purchasing power. With the 10% loss plus the 5% increase in value, you’re looking at a combined 15% loss in purchasing power if you wait until next year to make your purchase.

Also, owning continues to be more affordable than renting in most areas of the country. If you have any questions or want to schedule your no-obligation discovery call to determine your buying and/or selling needs, don't hesitate to reach out via phone or email. We look forward to hearing from you soon.