Short-term and long-term home price increases are not consistent across the board for every real estate market. As a result, home sellers and investors alike should be prepared for home price hikes until at least Q3 2020. For those who are not prepared for price hikes, this could present a problem during the past several months of their home purchase.
And as housing markets have stabilized, home prices have risen on the rise. Home prices are almost at an all-time high and many investors are making money from the relative scarcity of prime and better-located homes.
The question is how much further can home values rise before another correction hits? But, there are signs that home prices are likely to settle in the same range or even lower. So, what could you do if you were considering a buy in the current market?
If you were thinking about purchasing a home in the current market, you may want to think again about buying a home at a current price or lower. Although home prices are going up, they could decline for the next few months.
More Sellers Willing
With strong job market and stagnant wages, this may mean sellers are trying to find buyers who are willing to pay more than they can afford. This means that most sellers who are currently seeking to sell their homes to get out of the market will have to settle for paying less than their home is worth.
In fact, recent statistics show that home prices were only slightly higher in February and March of this year than they were last year in the first quarter of a year-long home buyer’s market. In fact, there is a strong indication that home prices may drop to lower levels in the next few months. And, many people are already struggling to pay the inflated home mortgage.
How do you know if your home is worth less than it was at the beginning of the year when home value increases were climbing? It may be possible that your home is already priced below where it should be at this point in time.
Since so many home buyers are still trying to find an apartment or condo that meets their budget, they are still paying for a higher property than what they actually paid for it. And with the economy still struggling, this trend is only going to continue.
With home values still higher than they should be, there are more sellers than buyers in the market. And buyers who don’t have the ability to pay a higher price may find that their “for sale” sign is already on the front lawn or that they have found a better price somewhere else.
In other words, the big sellers and big home buyers in the real estate market are doing just fine. But other consumers are finding it harder to find a bargain.
So, it is imperative that when you are thinking about buying a home in the current market, you get in now. If you are not ready for a large increase in your home’s value, you could be facing the prospect of waiting until a seller takes advantage of the downward price trends in the upcoming months.
If you are looking to sell your home, price hikes in the market are not a surprise and shouldn’t be considered a shock. The real estate market has been through this before and has come out of the crisis stronger than ever.