National Market Update - October 2022
Have rising real estate prices and interest rates kept you from buying your dream home? With such a fast-paced changing market, you may be uncertain about what the right move is for you and your family, especially with all the negative headlines flying around. Remember, negative headlines get more attention, so I want to clear some things up about where the market is at today.
According to the National Association of Home Builders along with Wells Fargo Housing Opportunity Index, only 42.8% of the new and existing homes sold from April through June of 2022 were affordable for the average family income, a large drop from 56.9% of homes that sold in the first quarter of 2022. Jerry Konter from the National Association of Home Builders talks about where this is coming from when he says, “Rising housing costs stemming from increased interest rates, supply chain disruptions that have led to higher prices for building materials, and a persistent lack of construction workers are dramatically affecting home prices.”
With all these factors, the National Association of Home Builders believes they will see a decline in the number of homes being built. If you are waiting for a downturn in the market, many are saying that this is not going to be happening anytime soon so the time to buy is now! In other words, like anything else, supply and demand will dictate value. And remember, when you own a home there is usually a lot of interest to write off which can save you a lot of money on your taxes. Be sure to talk to your accountant about that.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2022 real estate forecast, don't hesitate to reach out - we're happy to help