If you’re a homeowner, then you’re probably keeping an eye on the real estate market. Recently, there has been some big news about home prices. According to reports, the average price of a home increased by 18.8% in 2021! This is definitely something that homeowners need to be aware of. So, what does this mean for the future? Keep reading to find out!
The experts tell us that the reason behind the increase in prices is at least two-fold. 1. Inventory levels are extremely low, which means that there is more demand than supply, driving prices up. 2. Interest rates were relatively low for 2021. This made it a good time for buyers to enter the market.
Now that we know the reasons behind the increase, what does this mean going forward? Well, it’s difficult to say for sure. However, most experts believe that prices will continue to rise in the coming years. This is due to the low inventory levels and high demand that is expected to continue.
The wild card to consider are interest rates. If they continue to rise, it will become more expensive for buyers to purchase homes. This could cause prices to level off or even drop a bit.
All in all, the future looks bright for homeowners and investors alike. The market is expected to continue growing steadily over 2022 – so now might be a good time to buy, before interest rates take off. And it may be a good time to sell before prices level off or decline.
