Why aren't home prices going to drop and should I buy a house now?
When the COVID-19 pandemic first hit the U.S., there was talk that the housing market might crash and home prices could drop. However, that's the opposite of what has happened.
Demand for housing has increased, as many city dwellers have decided to to look for homes outside of the city and in the suburbs. Also, mortgage rates have continued to hit record lows, and home buyers recognize a good deal - mortgage purchase applications have hit an 11-year high and are up 21% from last year.
At the same time, many sellers either pulled their home listings off the market or decided to wait before listing their home for sale, due to concerns about covid and having strangers come through their home. Inventory was already an issue pre-pandemic, and is now tighter than ever with multiple offers and bidding wars.
Since there is more demand, and even less inventory of homes for sale, prices continue to go up and are likely to do so until mortgage rates rise significantly.
The good news is that it is still a great time to buy a home. Any increases in price will be offset with the low mortgage rates, which help you to get more house for your money.
If you'd like to talk about getting prequalified to purchase a new home or to find out what you can afford, you can reach out to me anytime.