This past year, we have seen some crazy housing trends. It’s truly been a seller’s market making it a little harder for buyers to get the house they want. Multiple offers, bidding wars, cash offers, sight-unseen offers, houses going for prices well above asking, etc. If you’ve been in the real estate market, you know the struggles (for buyers) and benefits (for sellers). So what does this mean for the year to come? What's the cause of the housing market changes? Will things remain the same or go up/down?
With the cost of everything rising, it’s predictable that mortgage rates will rise too. In the last year, the low rates caused many people to decide right now would be a good time to refinance, sell, or buy their new home. While mortgage rates are rising, they’re still at an all time low, historically, remaining consistent with the buying and selling trends. Compared to an average high of 12.7%, the current average of 3.5% still seems like a steal to lock in these rates with a new home. But with the prediction of more rising rates, less and less consumers will be looking to the real estate market to buy causing the market to drop back closer to what we consider ‘normal’ sometime next year… or years to come.
Supply and Demand
Low supply of houses availabl