Are property prices still rising?
As conditions in the real estate market loosen, we would expect slightly slower sales activity, a little more inventory, and an extension of the average market days. Real estate prices will continue to rise, although the pace of price growth should slow down slightly. The 25.9% increase in Phoenix meant that all cities accelerated house prices for the 24th month in a row, with San Diego (+24.7%) and Seattle (+23.4%) just behind. Over the past four months, list price growth has remained steady, more homeowners intend to sell in the next six months, and single-family home development is progressing faster than in recent history.
If you look at America’s real estate price developments, they tend to rise between 3 and 5% per year in the long term. If things continue as they are, prices should continue to rise, especially when interest rates are so low and the stock market allocates the resources for hefty down payments. According to Black Knight, a real estate and mortgage data analysis company, the annual growth in property prices saw a 25-year average of 3.9%. What was a 5% down payment for a house last year is much higher this year as property prices continue to rise. So keep saving and explore the options for down payment assistance (DPA).
The bubble starts to form as demand for real estate increases and supply decreases, a combination that can only lead to price increases. However, CoreLogic representatives said that price increases could slow down to a 3.2% profit by this point next year as the ongoing challenges of affordability deter potential buyers and the number of offers for sale increases. The main reason for such an extreme pace of home price appreciation is the basic economic seesaw of supply and demand. Watch for mortgage rates to rise but remain very low historically, property sales soar to a 16-year high, price and rent growth slow, refinancing toward payout, and crime rates remain low, albeit with a rise in distressed sales.
As already mentioned, the average increase in list price has slowed down to single-digit figures. However, this trend reflects a shift in the stock mix for sale this year, with more small houses being offered for sale this year. In this hot real estate market, however, it is difficult for buyers to find a good deal, especially when the typical offer price rises by double digits. Instead, there was a real estate boom in which average home prices have risen by an astonishing 24 percent since the beginning of the crisis.