Starting late last year, some predicted that the 2018 tax changes would cripple the housing market. Headlines warned of depreciation and suggested that buyer demand could drop like a rock. Now that the first quarter numbers are in, we can begin to decipher the actual that impact tax reform has had on the real estate…
A. All indicators suggest that home prices will not fall as mortgage rates climb through the end of this year, it’s the law of supply and demand that is driving increasing home prices. The best time to sell anything is when demand is high, and supply is low. As the number of homes for sale increases and home value appreciation slows, we expect the market to meaningfully swing in favor of buyers within the next two to three years Real Estate is a cyclical market– it’s interesting to watch the dynamics of the market. What we see is prices rise, home sales slow down, prices weaken and home sales pick back up. It’s the way a housing market is supposed to behave in a normal environment. But it’s been so long since we’ve seen a normal environment that we forget how it’s supposed to work. Mortgage interest rates have increased by more than half of a point since the beginning of the year. They are projected to increase by an additional half of a point by year’s end. Because of this increase in rates, you are guessing that home prices will depreciate. Let’s take a look at the data.
The best time to sell anything is when demand is high, and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home or downsize, now’s the time to list your house for sale and make your dreams come true. Call me today 714.343.9294 and visit stovallteam.com
How a rate hike will affect home values and the market as a whole is murkier. The tax bill passed in December has numerous implications for housing that may not be fully realized for years to come. Bottom Line When mortgage rates increase, history has shown that prices appreciate (and do not depreciate) during that same time span. Now, more than ever, who you work with matters! Our primary goal is to deliver the highest level of service available to each and every one of our clients. We strive to make each of our listings the best they can be. Is now the time for you to make your move? Call me today at 714.343.9294 Visit stovallteam.com
How A Lack Of Inventory Impacts The Housing Market
The best time to sell anything is when demand is high, and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home or downsize, now’s the time to list your house for sale and make your dreams come true. Call me today 714.343.9294 and visit stovallteam.com