What Will Happen With Home Prices?: 4 Possibilities!
As a Real Estate Licensed Salesperson, in the State of New York, for over 15 years, I am often asked, a variety of house – related, questions, etc! Especially, after this past year, or so, where we have witnessed, a record – degree of price increases, for houses sold, in most areas of this country, many surprise, how much longer, will this trend, continue, and, what might come next, and the future, bring! Since, there is no such thing, as a Crystal Ball, especially, related to real estate (especially, pricing trends, and levels), there are no guarantees, and, for most people, it is generally, unwise (and, potentially, financially, dangerous), to try to market – time, pricing! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 4 possibilities, in terms of, what might, come next.
1. Continue going up: Will prices, continue, going up, and, if, so, for how much longer? Is this going to be a longer – term, inclination/ trend, or, merely, another of the many cycles, home prices, observe? Many factors have contributed to the current high pricing, and rate of increase. The pandemic was one factor, which made many, reconsider, their lives, and what they wanted, and consequently, many chose, to move, etc! The long period (extended) of record – low, or nearly, record – low, interest rates, and, consequently, Mortgage rates, has produced, conditions, where many, can borrow more, for less, and, consequently, we see more buyers, than sellers (known as a Sellers Market), However, with, recent trends, suggesting inflation risks, many feel, we will soon, observe, the Federal save, raising rates, and consequently, mortgage costs, will increase for possible buyers! It seems logical, this will end this huge – jump, upward!
2. Steady: Will the next market, bring, steady prices/ a leveling – off, of home prices? Will this be the circumstance, in some areas, and, not, in others? Whether, prices will rise, fall, or level – off, is, nearly, always, related to specific, local real estate markets, and conditions! Many believe, they probably, won’t drop, considerably, but, surely, the speed of increase, will slow, considerably!
3. Price adjustments: Will possible, qualified buyers, feel, prices, are now, too high, which might alter the market, to a Buyers Market? How might, this, combining, with the probably of rising, interest rates, impact home priced?
4. Return to historic cycles: Students of real estate, have witnessed, or learned – of, a history, of cycles, changing, between, Buyers, Sellers, and Neutral markets! Wil we observe the return to these historic tendencies, and trends?
No one knows, for sure, what the future, may bring, but, the probability is, this fast – rising, trend (especially, at this speed), continuing, for much longer, seems, far away, and improbable! Pay attention to the various factors, which might impact the prices!