If you've ever considered purchasing a home of your own or selling your present residence in order to renovate, you are familiar with the emotional rollercoaster that fluctuating property values may cause.
It's a story that many have experienced about financial aspirations, uncertainties, and a hint of fear.
However, if you wait to move because you think home prices might decline, rest assured that they won't. Actually, the reverse is true.
Home prices increased dramatically in the first half of 2022. These increases were unsustainable and somewhat substantial.
Thus, prices experienced a correction and began to decline slightly in the second half of the year.
However, those minor drops were fleeting and superficial. Nevertheless, the media gave those dips a lot of attention in their headlines, which made people quite nervous and uneasy.
Here's what hasn't been adequately discussed, though. As of right now, in 2023, prices are rising again, albeit at a slower rate.
Additionally, the fact that all three assessments indicate more regular or usual price appreciation this year is positive news for the housing market after excessive price rises and the reductions that occurred in 2022.
Anticipating ahead, this is usually the time of year when home price appreciation slows down. There's a chance that at that time, the media would mistakenly associate a slowdown in price rises with a decline in property values (a depreciation). Be not deceived. Even slower price growth is still increasing.
Why Are Property Prices Rising Right Now?
There are still not enough houses for sale to accommodate everyone who wants to buy one, which is one of the reasons why property prices are rising once again.
Increased mortgage rates not only reduce the supply of available properties but also moderate buyer demand. The lock-in impact of mortgage rates is the reason for this. Some homeowners are reluctant to sell their existing home and lose their low mortgage rate in order to take on a higher one for their next property when rates rise.
Thus, the supply and demand dynamics of the housing market have been impacted by rising mortgage rates, which have an effect on both buyers and sellers. However, prices are still rising since there are still more people looking to buy homes than there are available properties.
This Is How It Affects You
Purchasers: It should cheer you up to know that house prices have increased again if you've been holding off on buying a property because you were worried about its value declining. Purchasing a home allows you to become the owner of something that typically appreciates in value over time.
Sellers: If you've been putting off selling your house because you're concerned about how shifting real estate values will affect its worth, it might be a wise decision to list your home with a real estate agent. According to the most recent data, housing prices have changed in your favor, so you don't need to wait any longer.
In summary
In case you were hesitant to move due to concerns about potential declines in home prices, be assured that prices are rising nationwide. To learn more about how local property values are shifting, collaborate with a real estate agent in your community.
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