In recent times, the real estate market has seen a remarkable resurgence. This is because home prices rebounded across various regions. For instance, 117 economists and housing experts surveyed by Zillow said that home prices will rise at a 3.5% annual rate until 2027. That would be a more stable trend last observed in the 1990s prior to the housing boom and bust of the 2000s. And according to Jeff Tucker, Zillow’s senior economist:
“A return to more normal growth would be welcome after the rollercoaster ride that home prices have been on lately…“
In this article, we will delve into the statistical data and emerging trends that state a significant upswing in home prices. And currently, it is reflecting a robust recovery in the housing market.
Rising Home Prices
We are seeing that the housing market has experienced a notable increase in home prices. It has demonstrated a strong rebound from previous dips. As per the latest reports, national median home prices have surged by an average of 10% over the past year. This signifies a growing demand for housing.
Regional Variations
While the rebound is evident on a national level, certain regions have seen even more impressive gains. Metropolitan areas have experienced double-digit home price growth, outpacing the national average. They are characterized by strong job markets, limited housing supply, and attractive amenities. Because of these, they are now highly sought-after destinations for homebuyers.
Low Inventory and High Demand
According to experts, one of the reasons prices haven’t fallen as some had predicted is that there aren’t enough homes. There are more buyers than there are houses available for purchase, even with today’s mortgage rates. This supply-demand gap has created a competitive market. It prompts bidding wars and driving up home prices.
How This Affects You
Investing in real estate through homeownership provides you diversification to an investment portfolio. It is important to note that while stocks and bonds are subject to market volatility, owning a home offers a more stable and tangible asset. To support this, a study by the Federal Reserve found that homeownership accounted for 34% of the average homeowner’s net worth in 2019.
Are you Ready to Be a Homeowner?
Buyers:
Have you been putting off buying a home? It is understandable since you might think that the value of your home would decline. You should feel some relief knowing that home prices have increased. Additionally, it gives you the chance to acquire something that typically appreciates in value over time.
Sellers:
It might be a good idea to work with a real estate agent to list your home. Most especially if you’ve been holding off selling your house. You might worry about how changing home prices would affect its value. But the good news is, the most recent data states that things appear to be going in your favor. So there is no need for you to wait any longer.
The Bottom Line
The recent rebound in home prices showcases the resilience of the real estate market. It also shows its ability to recover from economic downturns. With a combination of historically low mortgage rates, favorable economic conditions, the housing market has become increasingly competitive. Not to mention the shifting priorities among buyers.
As the demand for housing continues to outpace supply, it is likely that home prices will maintain their upward trajectory. So if you are looking to buy, this the best opportunity for you to participate in this thriving market. If you are a buyer, there is no need for you to delay your journey to homeownership. And if you are a seller, the housing market is still in your favor. It is best if you work together with a local expert to stay informed about local real estate market trends.
What To Do:
Did you find this read interesting? Need expert and white-glove advice? Get in touch for local and professional real estate advice in your neighborhood. Fill in the form above to speak with a real estate professional specializing in this topic and more!