Some would say both. There is some truth to that, however, what has gone up the most? Home Prices! Traditionally home prices escalated around 4 to 6% annually. What we saw during the pandemic is home prices skyrocketing up, in some cases, 24% or more. No matter what the interest rates this is a huge increase. At one time, when interest rates up 18% or more, this was a big issue but homes were still selling. Why? The average home prices were at a level that these homes continued to be affordable.
The old saying really applies to this situation, “what comes first, the chicken or the egg?” Today’s case is home prices. It doesn’t matter what the interest rates are or at least doesn’t matter as much when home prices are affordable. Where do we go from here is the question? My thoughts are that homes priced in the $300k range is now the affordable range for many people that are looking to acquire a home. However, this may still be a reach for some entry level buyers. Resale homes are out there in this range and they don’t last long on the market because there is not enough inventory to supply the demand. Next, when I look at new construction homes, I see builders moving further out to be able to afford to build a homes in that price range. For those not minding a little longer commute, this could be the answer for them.
The key for the public is finding these properties and finding them early. That statement is definitely accurate when you look at resale homes. It may not be as big factor on new construction. However, move in time is another factor unless they are already built. The key to knowing which way to go is very important in the decision-making process. Information is key to making the right decision. Our “Buyer Specialists” are dedicated to assist people in that regard by helping them with the information home buyers require. There is no obligation or charge when seeking this information because we want those looking to purchase a home to have the correct information that will help them with their home buying decision. Please contact The DeBerry Team of KW at 214-215-5106 for assistance.
Posted by Roxanne DeBerry on
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