Why do home prices continue to increase? While yes, we’re still in a global pandemic, there are a few other factors to consider when asking this question.
First, there are currently fewer houses available to purchase than there have been in the past two years. Just since last year, there are 40% to 60% fewer properties available on the market in most price ranges. That means competition is fierce for these homes. Also, interest rates are 30% lower now than they were at the end of 2018, which means buyers are getting houses for about 30% less, even though prices have risen.
During this health crisis, children are being schooled from home, and they need space for that. We also have many people working remotely from home, and they need office space. So all these people are looking for the same properties. We’ve seen family home prices grow more than condos or townhomes. More bedrooms mean more opportunities in the market right now.
Many people are also considering moving up, and that’s challenging. However, when you have a specific goal and plan, you can achieve it.
If you have questions or want to discuss how to plan for your next move, call or email us. We would love to be your real estate resource.