MINT HILL, NC – The next few months in the real estate market could become challenging with the right in mortgage rates making it harder for buyers to afford homes on the market currently. Home prices are rising so fast, it can seem like it’s hard to keep up.
Prices are actually on the fastest pace, going up, since 2014 with the S&P CoreLogic Case-Shiller 20-city price index showing a 10.1% year-over-year gain in December. This was also up 9.2% from November and the first time home prices rose by double digits since January of 2014.
In 18 of the 20 large cities the index looks at, prices rose with the largest price increase coming in Phoenix, Seattle, and San Diego.
The Federal Housing Finance Agency also released a quarterly home price index, for the final quarter of 2020, which showed a home price increase of 10.8%. The biggest increases are found in western states including Idaho, Montana, and Utah. Boise saw the biggest jump based on this index with San Francisco seeing the smallest jump.
What Does it all Mean?
While this data might be great, if you’re not in the real estate industry, you might not know what it all means. It’s important to understand why prices are rising so much, especially if you plan to search for homes for sale in Mint Hill, NC, or sell Mint Hill real estate in the near future.
The biggest contributing factor to home prices going up is demand. It’s extremely high, partially due to the pandemic. Before the pandemic hit, the market was still a seller’s market, but it was inching its’ way toward a more balanced market.
The pandemic hit and many sellers pulled their properties from the market causing scarcity and low inventory. Pair this with more buyers entering the market as they make life-altering decisions due to being able to work from home, gaining new employment, or wanting to move near family and it causes a situation where sellers have the upper hand by quite a bit.
Another factor is the slow home-building activity in the United States, which has caused a housing shortage. However, these factors have been around since the pandemic started, but one major factor, which is making it hard for buyers to afford to buy a home has just happened in 2021.
Mortgage rates have gone up due to positive economic news, and the COVID-19 vaccine. The rise in rates has made it harder for buyers and will make it a bit more challenging over the next few months.
While the rates may have gone up, it’s still a good time to consider buying or selling, especially if you were already planning on it. Home prices are very high, which helps sellers, but there are possibility mortgage rates could continue to rise, so buyers waiting may end up paying more for less house just a few months or a year from now.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704)650-5707 | email@example.com | www.1stchoicepropertiesinc.com