Sellers Have an Opportunity with Today’s Home Prices

Homeowners are wondering if the value of their homes will continue to rise as mortgage rates increase. However, there's good news- historically, when interest rates go up by one percent or more, home prices tend to stay flat and actually appreciate! This may be happening now too; we'll see what happens with these latest numbers on housing markets soon enough.

According to data from CoreLogic, home price appreciation has been re-accelerating since November. The graph below shows this increase in home price appreciation in green:

Homebuyers are in luck if they want to buy a house but there is an imbalance between supply and demand. specifically, housing stock has not kept up with the growing population which means that people have been competing for few available homes as mortgage rates started rising this year; leading many families to make purchases before prices could skyrocket even higher due to increased competition among each other driving them towards purchasing property at attractive deals because it was now or never when buying anything expensive nowadays. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:

“Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge.”

And experts say prices are forecast to continue appreciating, just at a more moderate pace moving forward. A recent article from Fortune says:

“. . . the swift move up in mortgage rates . . . doesn’t mean home prices are about to crash. In fact, every major real estate firm with a publicly released forecast model . . . still predicts home prices will climb further this year.”

What This Means for You

Homeowners who are looking to sell their homes should know that there is a great opportunity for them now with today's high prices. As the value of your house increases, so does its equity which gives you extra money in pocket!

Why wait for prices to drop? Sell your house and use the equity from that sale towards buying a new one! With today's high levels of appreciation, you may be able cover some or all aspects in terms down payment.

Bottom Line

History has shown that when mortgage rates go up, home prices don't drop. Now is still a great time to sell your house thanks in part due price appreciation over the last few years! When you’re ready to find out how much equity you have in your current home and what’s happening with home prices in your local area, let’s connect.