There is a level of fear and economic uncertainty in many Americans mindset. However when the economic uncertainty dust settles, many buyers and sellers will certainly will jump back in the housing game. Demographic trends has the supported elevated purchase demand in the years to come, so this brings the question of when, no if, for the housing market.
Many wonder about mortgage rates rising, as of September 2022 mortgage rates are rising near seven percent and 30 year fixed rate highest level since 2008. The domino economic effect the the fed's were banking on is slowly working. Slow down spending and all home sales prices are falling and production cut back in response for rapidly declining affordability.
As the unthinkable is happening before our eyes, get ready for the November and December 2022 spike in interest rates. In turn, home prices are expected to decline. Home-buying can be a challenge as the market tries to level out with prices. I am finding that lender's are being creative with loan lock rates. some housing market's are considered over-valued and may need to adjust to reality of higher mortgage rates are pushing prices down at a moderate pace. I am seeing it everyday, many seller's are in denial, however they are sitting longer on the market.
Buyers are seeing opportunities to take advantage with market conditions cooling off and more bargaining power while the housing market with homes for sale is recorrecting itself. As home prices slightly decline given the ongoing supply and demand imbalance and continued strength in the labor market. What is ahead for home prices is the root issue of what drives house prices almost always is supply and demand. It is clear due to supply and demand it is becoming increasingly clear that home prices have to decline to restore market liquidity and balance.
The experts are stating housing prices will fall 4% in 2023 and another 5% decline in 2024.
For many households and home price forecast, home equity is the only source of wealth creation. Record gains in equity and record declines in loan to value ratios will provide many owners with a financial buffer in case economic conditions worsen. Click link to learn more about economic slowdown /ECONOMIC-SLOWDOWN---32819---32836---Dr-Phillips-6-22903.htmlRecord equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas. Click link to learn more about Kevin Strawter /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html Serving Dr Phillips and all Central Florida. Stay connected and contact your trusted advisor and professional realtor Kevin Strawter today for all of your real estate needs at 850 496-6412.