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In early 2022, some experts predicted a decrease in home prices. However, things have taken a turn, and those same eight reputable housing market forecasting companies collectively anticipate a significant 2.84% increase in home values, with none of them projecting depreciation. This shift carries important implications for homeowners and potential buyers.
While home values have held steady, total home sales nationally and in our local market have declined. Our local market has dipped by 10.3% so far this year. The primary reason for this decline is the limited availability of homes for sale in the resale market, along with affordability concerns mainly revolving around interest rates. A big reason that there is less availability in the resale market is that 70.7% of homeowners currently have a mortgage interest rate below 4%, which makes them less inclined to move.
Another noteworthy trend is that homeowners are staying in their homes longer, with an average tenure increase of 3.2 years since 2010. The typical homeowner now lives in their home for 9.3 years before considering a move. This has created a great opportunity in the market for sellers with significant equity in their homes to sell for record profits and purchase their next home with all cash or a small mortgage. This dynamic has presented several challenges for buyers, but the benefit has been less competition in the market, leading to more negotiating power and great incentives when purchasing new construction homes.
Take a look at our video below for more information regarding the local market trends.
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