Rising Home Prices

As most realize, we’re also experiencing a time of, unprecedented, inflation. We see it, in, nearly, every facets of our lives, from your cost, of fuel, with the gas tank, and heating our houses, to food expenses, etc. The current rate – of – inflation, could be the highest, we have now experienced, in lots of decades! One from the segments, where pricing is continuing to grow, most quickly, will be the cost of investing in a home. Obviously, many factors, influence this, including: post – pandemic – blues; limited/ insufficient inventory, available – for – sale (basic economic premise of Supply and Demand); historically – low, mortgage rates, making low mortgages, available (and, thus, getting, more, bang – for – the – buck, by creating low monthly costs, etc. With, that in your mind, this information will attempt to, briefly, consider, examine, review, and discuss, potential, short, intermediate, and longer – term ramifications, these, rising, home values.

  1. Short: In the short/ immediate – term, the main beneficiary with this, is, sellers benefit, although, if, someone, is buying another home, the blessing is reduced! At, what point, will, certain, qualified, possible buyers, decide, to attend – this – out, as it seems, too – heated, for the kids? How might that impact things, especially, because, not a soul, can understand, in to the future?
  2. Intermediate: The Federal Reserve, is very much, indicating, they mean to raise rates of interest, within the somewhat – near, future, mostly, as a result of overall – inflation rates, and certain undesirable ramifications! This will create, corresponding, decreased/ lower, mortgage rates! When, that takes place, it will become more pricey, around the all – important, monthly basis, to have a house. In addition, for the people, who, look to sell your house, they bought, at this sort of high – price, inside the intermediate – term, they might find it challenging, for getting all the costs of owning the house!
  3. Longer – term: Historically, areas, are cyclical! That means, you will find alternating periods, of, developing a Buyers, Sellers, and/ or, Neutral Market, and lots of factors, know what happens! After, over many years, like a Real Estate Licensed Salesperson, within the State of New York, I strongly believe, those, who try and market – time, the housing marketplace, often, lose! The probability is, over – time, we’re going to witness, coming back to observing, housing prices, slightly, out – perform, the, inflation rate (after, a settling – in, period, to adjust to the actual, unprecedented, rate of price increases).

What is definitely the ramifications in the rising home values, right now we, witness, in many parts with this nation? Since, not a soul has, a Crystal – Ball, our advice, could be, stay – vigilant, and do not become greedy!

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