Is housing affordable? – As home prices continue to rise due to a lack of inventory, many people are becoming more concerned about housing affordability. Taking a look at NAR’s Housing Affordability Index puts that concern to rest. Let’s get together to go over your specific market and determine whether or not you are ready to buy today!
Is Housing Affordable?
Interest Rates Creeping Up
We already know the interest rates are creeping up. They’re up over a half a point and they’ll probably go at least another quarter of a point, maybe even a half a point before the end of the year. And if prices continue to go up at the numbers that are suggested, then we might have a little more of a slowdown.
What we see is a slowdown in sales, but what we’re starting to see is prices starting to level off because inventory numbers are getting a little bit better and if that happens, if more inventory comes to the market it will impact pricing.
First Time Home-Buyer
Of course, we are talking about the first-time homebuyer, but we’re also talking about that move-up buyer. A lot of them are locked in because they can’t find a house they really want. The consensus that we understand that whether it is new construction inventory, existing homeowners that want to move will free up their listing. That’s what we’re seeing today.
New construction is a little bit better. That’s freeing it up. People are moving from their existing house to the new construction and their existing house is now coming on the market,
While this is based on national research it is analogous to the Scottsdale Real Estate Arizona market.
You may also like the article that follows:
Rising home prices – As home prices continue to appreciate, many potential buyers and sellers aren’t sure what it really means for them. It’s important to understand, however, that rising prices also means rising equity. If you’re wondering what home price appreciation means for you, let’s get together to discuss building your wealth today! […]