Are You Waiting To Upgrade To Your Dream Home?
Since January of this year, interest rates for mortgages have increased by more than half of a point. This interest rate increase has many thinking that real estate prices for homes and condos will drop. However, historical data proves this false.
How Do Home Values Today Compare to Beginning Of The Year
While mortgage interest rates have been rising, home values have also been rising. Here are the current monthly price increases as reported in Corelogic's the Home Price Insights Report:
- January 2018 - Real estate prices Were up 0.5% versus the prior month
- February 2018 - Real estate prices ere up 1% versus the prior month
- March 2018 - Real estate prices were up 1.4% versus the prior month
In addition to continued appreciation in prices, the level of appreciation accelerated over the first quarter. Over the next twelve months, Corelogic predicts a 5.2% increse in home prices.
How Can Prices Rise at the Same Time Mortgage Rates Increase?
Freddie Mac explained recently: "In the curring housing market, the driving force behind the increase in prices is a low suply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong realtive to the constrained supply and continue to put upward pressure on home prices.
If you have been considering a move up to your Dream Home, puttig it off until later thinking prices will fall may not be the best strategic move.
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Disclaimer:The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia PA and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia PA and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.