Wednesday, August 11, 2021 / by Breanna Thornton
We are well over halfway through the year and there are a lot of questions in the air about the housing market still. The pandemic is still a contributing factor to market conditions, but there are many other factors to account for. This month we are giving you the latest news on the end of summer market.
Are Prices Still Appreciating?
The short answer to this question is yes. Prices are still appreciating across the board. However, this appreciation is starting to slow as the months go by. There is slightly less demand for homes from buyers, so naturally the prices will go down. While the prices may go down, interest rates are projected to start rising, so affordability may not actually become any better. It might be best to look into moving now before the rates continue to increase!
Should Homeowners be Worried About Forbearance or a Housing Bubble?
With all the people moving, it can be easy to think this is a repeat of the crash of 2008 with masses of forbearance. However, there were 9.3 homes that foreclosed between 2006 and 2014. Currently, there are less than 2 million homes under foreclosure, and projections are beginning to improve even more. There is also still a huge demand for homes, which should keep the market from going into a bubble.
Are We Seeing a Turn Around?
It’s definitely still a seller’s market when you see all of the buyer traffic happening. However, based on the graph below, you can see there is a slight rise heading towards the buyers market side. Another thing helping is the amount of new construction. The past few years have been way below average when it comes to new single family homes, which contributes to low inventory. Buying a new home is a great option to ensure you get a home in this seller’s market that is exactly to your standards!
This market report shows that not a ton has drastically changed in the market, but some aspects are beginning to turn. Keep up to date with a real estate agent and your lender to figure out what is happening in your area! If you have any questions or concerns, always feel free to reach out to any of us here at Hip.
Header image from Daily Hive