Sellers Have An Opportunity With Today's Home Prices
- As mortgage rates started to rise this year, many homeowners began to wonder if the value of their homes would fall. Here's the good news. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. After leveling off last year, home price appreciation has re-accelerated since November. The graph below shows increases in home price appreciation in green. This is largely due to an ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is still high.
As mortgage rates started to rise this year, many home buyers rushed to make their purchases before those rates could climb any higher. The increased competition drove home prices up even more. And experts say, prices are continued to appreciate, just at a more moderate pace moving forward. In fact, every major real estate firm with a publicly released forecast model still predicts home prices will climb even more this year.
So what does this mean for you? If you're thinking about selling your house, you should know you have a great opportunity to list your home and capitalize on today's home price appreciation. However, as interest rates continue to rise, fewer buyers are out there, which means the terms you can command as a seller might not be as strong as they were over the last two years. When you're ready to find out how much equity you have in your current home, and what's happening with home prices in your area, give us a call, shoot us a text, or slide into our DMs.