Rising interest rates have been prevalent in the news recently. As rates rise, home affordability dips. Buyers’ upper price limit is pushed down, and some buyers may be priced out of the market altogether. However, with rates expected to increase further, now could be the right time to explore the market.
Housing prices have been rising at an astonishing pace for the last few years, but is this expected to continue? There is no crystal ball that can accurately determine what the housing market will do, but it is helpful to learn what industry experts have to say. Zillow, for example, states that home prices will rise more than 10% in 2022 before easing to a more reasonable rate of appreciation in 2023. Others, however, see slower appreciation for the rest of the year. A rare few see housing prices decreasing slightly in the months to come before leveling off.
While there is considerable uncertainty about what housing prices will do, you can expect to find more inventory. Some sellers who may have been sitting on the sidelines watching their equity balloon may now want to sell before the housing market cools off. This may create a growing inventory for buyers to choose from. The feverish pace of the market will slow as well. The days of a home receiving dozens of offers within a few days of being listed may mostly be behind us for now.