Over the last couple of years, we have seen low-interest rates, a housing shortage and record-high prices on houses being sold. However, changes are happening in the marketplace. Interest rates are rising, causing a decrease in buyers seeking mortgages. Inflation is starting to impact our nation. And fewer people are looking to purchase a new home. Does that mean we are heading for a market correction?
This article from Realty Times does a great job of identifying many of the factors occurring in the marketplace and what the impact could mean to you as a home seller or home buyer. I think you will find it interesting. Enjoy the article and give me a call if you have questions or want to discuss your options.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: Realty Times | Repost Houterloot 6/9/2022 -
According to analysts, the housing market shows signs that it might be in a correction, so what does this mean for prices? How will it affect both buyers and sellers?
Mortgage rate demand has been spiraling, and at the same time, home prices are still rising. These two converging factors are partially why experts are predicting the real estate market is either on the cusp of a correction or already in one.
Home sales are declining, and fewer buyers seek mortgages because they can’t afford interest rates, home prices, and inflation. Real estate agents are already reporting smaller bidding wars, and sellers are cutting prices.
Prices have started falling in some parts of the country.
Mark Zandi, who serves as chief economist at Moody’s Analytics, believes a correction has already begun. Zandi says there are cracks showing in the housing market, which will grow in the coming months.
In April, median home list prices throughout the U.S. hit a new record high of $425,000. That was more than 14% higher in just a year. Average mortgage interest rates were up to 5.25% in the week that ended May 19, a 75% increase in a year.
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