What are the projections for housing prices in the market according to the experts? What’s going to happen? This seems to be the question of the hour, and we get that constantly. And truly I don’t think there’s ever been a time of so much uncertainty, so I can see how it can be scary. So, what’s going to happen?
Let’s look at what the real experts and the advisors across the nation are forecasting. Only two of the major organizations are saying that we’ll decline, as you can see from this graph. Seven of the nine are projecting that the housing prices are going to go up ranging from about 2.3% to 4.4%. We believe that the lack of inventory has a significant impact on the projections going up. Right now, we can’t bring homes to the market as fast as people are buying them. Globally, we’re seeing prices increase substantially in certain areas, and the demand from buyers is substantial. This is also happening nationally.
Let’s just look at this quote from moving.com, “Summer home buying season is off to a roaring start as buyers flooded into the market. Realtor.com’s monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May’s record of 85 million unique users. I personally feel that the low-interest rates have a lot to do with buyer demand. The record-low mortgage rates have converted some prospective buyers into active buyers. Many times as the economy downturns it causes the interest rates to go down. But as we see the economy recover, we should assume that interest rates will go up.
So remember, it’s interest rates go down, and buyers buying power goes up. Meaning they’re able to afford and qualify for more, and their payment does not go up. Looking at the number of home purchase applications that were taken out from buyers, according to the Mortgage Bankers Association, we see that we have 11 straight weeks of year-over-year increases and applications for a loan to purchase a home for buyers. So according to experts and analysts across the country, the projections are positive.
For more information or just to chat about what may or may not be in the best interest for you, I would love to hear from you here at Homes by Sabrina, brokered by eXp Realty. And as always, remember everyone should love where they live.