Rising interest rates are definitely complicating the housing market. Many first time buyers that were qualified were ousted from the housing market due to rising interest rates in June and July 2022. Many seemed that their dream home was no where in sight. Many were under contract and received their worst nightmare. Everyone that was in this scenario faced huge terror attack. The economic conditions worsened even more when another inflation spike occurred in September, November and December 2022 which many are braced for this next increase to fight inflation.
Home price changes will certainly fluctuate by demographics and projections are mixed and not a science by any means. Experts state from here on that interest rates will respond to inflation. Provided inflation remains high, so will interest rates. some areas are buyer's market and some a seller's market.
As the worst is right before our eyes, the word recession looms in taxpayers eyes watching two consecutive months of negative gross domestic product growth. This defines recession. The word is on the streets that the rates will continue to keep rising. Only time will tell and could possibility have a negative effect.
As of November 2022 mortgage interest rates are 77 percent higher than exactly one year ago, providing those interest rates don't change, prices have to drop 45 percent for your monthly payments to regress to 12 months ago.
So at the moment this is also considered an economic waiting game with global issues continue to sit on the horizon with much uncertainty. With global economic shifting still sparks more volatility for the United States market. Don't be surprised to see nine percent by the end of the year 2022. Of course this is all meant to slow down spending and our Fed chairman Jerome Powell will continue to pound until this job is done to stabilize the housing market. Click link to know more about rising mortgage interest rates /RISING-INTEREST-RATES---32819---32836---Dr-Phillips-6-23561.html
Builders are surely working with the market situation and to survive have to stay in the green with home affordability. With prices of lumber tumbled gave home builders a space to breath. Now the lenders are being super creative with discussion of 40 year mortgages. Home prices has started to decrease in June 2022 and looks like they will certainly rise as interest rates continue to spike supposedly in September 2022. Homes lately, have seem daily to stay on the housing market at least double the time compared to this time last year.
In a sense this is working but painful for those that are caught on the fence to sell or buy. One may think this can turn around into a buyers market before this time next year. Buyers do have negotiation power in this market shift. Keep in mind that historically homeownership is a hedge against inflation.
Not only this hurts buyers, this hurts sellers as well with homes that sit on the housing market. Click link to know more about home affordability /HOME-AFFORDABILITY---32819---32836---Dr-Phillips-6-23503.html
For all homebuyers, brace yourselves as rent prices rise and almost no choice to buy a home to lock in a stable monthly mortgage payment. What is also in play of this matter, renters need to stay clean on credit scores, all payments on time, save money and do not accrue more debt. Click link for my homebuyer free e-book https://kevinstrawter.book.live/buyer-book
Don't forget to check out the Central Florida finest area Dr Phillips located near the Disney Theme parks. Get to know me more and click link /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html
As a trusted advisor and professional realtor that is on the market pulse, stay connected and contact Kevin Strawter today at 850 496-6412 for an appointment to meet any of your real estate needs.