Most experts agree that home prices will increase despite rising rates.
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With interest rates on the rise and the stock market in decline, you’d think that home prices would come crashing down, right? Wrong. A quick survey of some of the big players in the industry like Zillow, the National Association of Home Builders, the Mortgage Bankers Association, and Barry Habib will tell you otherwise.
These experts believe that home prices will continue to rise at a rate of about 8% to 10%, which is tied to the rate of inflation. We won’t see increases of 25% to 30% like last year, but home prices can be expected to go up alongside inflation.
Don’t expect to see a buyer’s market anytime soon. With rising rates, there will be fewer buyers and sales, but you also have to consider the fact that many homeowners have already locked in their low rates. It’s hard to find a home out there, so homeowners don’t have many incentives to pick up and move, especially here in our local market.
"If you wait for the market to come down, you could be missing out on."
Speaking of the local market, we can expect to see significant increases in the population of Mt. Pleasant, Daniel Island, and all over the Charleston area. Investors are looking to bring their money to markets where they feel they can at least keep pace with inflation, so they’ll continue to buy up properties before values climb any higher.
What can buyers do in this competitive market? Our database is full of people who, a few years back, said that the market was going to crash and decided to wait to buy. By now, properties cost $40,000 or $50,000 more. I don’t have a crystal ball to show me where home prices will go, but I can say that by waiting to buy, you could be missing out on opportunities.
Buyers in need of inventory should also look to new construction. There’s quite a bit of flexibility in this market, and even though you might be several months to a year away from buying, you can often lock in today’s rates and close later on. Additionally, we can always help you find off-market properties, especially those in the luxury category. We have an extensive database of homeowners we could comb to see if they’d be interested in selling their homes outside the traditional market.
If you’re a buyer who is concerned about selling your old home, we have access to a program that allows you to purchase a home and then gives you up to six months to sell your current house stress-free.
If you have any questions about buying a home in today’s market or anything else to do with real estate, give us a call or send us an email. We’d love to hear from you.