Thursday, March 16, 2023 / by John Salkowski
Interest Rates Are Rising—Will Home Prices Drop?
Will home prices drop with rising rates? Before I answer this question, I'd like to give a shout-out to our sponsor, Dan Avanzato from North Star Mortgage. Whether you're looking for pre-qualification, pre-approval, or refinancing, you can reach out to him at Dan@NortstarMortgage.com.
Now, let's address the frequently asked question of whether home prices will decrease with rising interest rates. Despite the volatility of rates, we're currently in a seller's market, and inventory remains low. This shortage of available homes has resulted in a continued increase in home prices.
To clarify, the housing market is not expected to crash. The reason why we had a crash in 2006-2008 was because of the practice of giving out loans without adequate documentation. Nowadays, acquiring a mortgage requires good credit and a well-qualified financial profile.
Overall, home prices are not decreasing, and in fact, are maintaining. We are back in a normal market, and homes that are in great condition and location are selling above list price. If you're considering selling your property, it's better to do it sooner rather than later.
If you have any questions or would like more information about the market, feel free to call or email me, my team, or our office. We look forward to hearing from you!