What will happen to housing prices?: 4 possibilities!

What will happen to housing prices?: 4 possibilities!

As a licensed real estate seller, in New York State, for over 15 years, I am often asked a variety of questions related to home, etc. Especially after the past year or so, in which we have witnessed a record degree of price increases, for homes sold, in most areas of this country, many are wondering how much longer this trend will continue. and what could come next, and the future, bring! Since there is no such thing as a crystal ball, especially related to real estate (especially trends and price levels), there are no guarantees and, for most people, it is generally unwise (and potentially financially dangerous). ), to try to market: time, prices! With that in mind, this article will briefly attempt to consider, examine, review, and discuss 4 possibilities, in terms of what might happen next.

1. Keep getting better: Will prices continue to rise, and if so, for how much longer? Is this going to be a longer-term trend/trend, or just another of the many cycles witnessed by house prices? Many factors have contributed to the current high prices and the rate of increase. The pandemic was a factor that caused many to rethink their lives and what they wanted and therefore a lot of things, moving, etc. The long (extended) period of historically low, or near historically low interest rates, and therefore mortgage rates, has created conditions where many can borrow more, for less, and therefore we see more buyers , than vendors (known as Vendors Market). However, with recent trends indicating inflation risks, many feel that we will soon see the Federal Reserve raising rates and therefore higher mortgage costs for potential homebuyers. ! It seems logical, this will end with this huge – jump, up!

two. Sign: Will the next market bring stable prices/a leveling off of home prices? Is this the circumstance, in some areas, and not in others? Whether prices go up, down or flatten out is almost always related to local real estate markets and conditions. Many believe that they probably won’t fall significantly, but the rate of increase will surely slow significantly.

3. Price adjustment: Do potential, qualified buyers feel that prices are now too high, which could upset the market, to a buyer’s market? How might this, combined with the likelihood of rising interest rates, affect home prices?

Four. Return to historical cycles: Real estate students have witnessed or learned of a history, of cycles, changes, between buyers, sellers and neutral markets! Will we witness a return to these historical trends and tendencies?

No one knows for sure what the future may bring, but the likelihood is that this rapidly increasing trend (especially at this rate), continuing for much longer seems remote and unlikely! Pay attention to the various factors that can affect prices!

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