What An Uncertain Housing Market Means For Your Home Sale
During the covid pandemic the housing market was booming, with literal lines outside most realtors, but recently the housing marketing has begun to take a shift with houses being on the market for longer and longer periods of time and sellers lower their sights.
There are several factors in play that are turning the housing market upside down. Although most states have been negatively impacted by the recent trend of the U.S. economy some states like Tennessee are showing an upward trend.
What Is Affecting The Housing Market
The U.S. economy and the housing market are two mechanisms that are linked together when one is going good so is the other, and the opposite is also true. The two biggest factors affecting the housing market are the recent mortgage rates and the actual prices the homes are being offered at.
The mortgage rate is a complex mechanism affected by various well known factors such as interest rates, inflation, and also other factors that people might not be aware of such as the pandemic. At the beginning of 2022 we saw the first signs of an issue with the housing market, when the mortgage rate jumped from 3% to over 6.42% in a few months. This means that on average people will be paying almost double what they used to at the beginning of the year.
The second factor is the actual prices the homes are being placed on the market at. Looking at the Case-Shiller U.S. National Home Price Index you notice one thing, homes are being priced 43% higher than they were in the beginning of 2020. This in turn in combination with increased mortgage rates are causing homebuyers to be hesitant of buying a home.
What Is Happening To Your Home Value
Throughout most of America home sellers are seeing the same thing happen. They place their house on sale and they wait and wait until finally have to lower their original asking price in an effort to finally get their home off the market.
Due to an interesting combination of rising home value and limited inventory the Teneasse housing market is showing an interesting trend of current remission. This trend is more than likely due to the state being ranked as one of the top in current economic activity and job growth. If this trend continues homeseller will begin to see the positive effect on their home, especially the price.
Gateway House Buyers
Selling your home is never an easy endeavor, with a complex housing marketing and fluctuating prices the stress can be too much. That is why Gateway House Buyers is dedicated to you and making the whole process as pain free as possible.
If you are ready to get started or wish to learn more about the options available to you, contact us now or call us at (931) 980 – 7845.