4 future positive price trends for the housing market!


    Since we have experienced perhaps one of the most prolonged and steepest price increases in housing prices, many seem to be wondering, will this continue, and if so, for how long, and then, what! Given that historically property prices have fluctuated and it is often difficult to accurately predict trends and certainly there is no such thing as a crystal ball when it comes to making these forecasts, it is wise to try to avoid any attempt at marketing – time! After more than 15 years as a licensed real estate salesperson in New York State, I believe and recognize that there are at least four possible pricing trends and possibilities. With this in mind, this article will briefly attempt to review, review, revise and discuss 4 of them, related to the residential housing market.

    1. Will it continue to increase, at the current rate or close to the current rate? : Most doubt that house prices will continue to rise at this rate for an extended period of time in the future! Many factors have created, in a way, a perfect storm, related to what we have been witnessing, for about a year! The emotional stresses and worries of this horrible pandemic, the desire to make certain lifestyle changes, and the desire to avoid, delay, and get closer to record-low mortgage interest rates, have contributed, as well as, in some popular geographies/regions, supply and demand, issues that, by creating a sellers’ market, hastened this process, and results!

    2. Continue to climb, but at a slower and more gradual pace? : Could prices continue to rise, but more gradually? At some point (and many, believe, we have already begun, witnessing, some evidence), many potential and qualified buyers will become discouraged and, if combined with, more homeowners, trying to cash in and sell, the pace will certainly slow down!

    3. Will prices stabilize? : How far will the potential cooling of this market go? Are we going to see prices stabilize, and for a while (adjustment period), prices become more stable, and even? When interest rates do eventually rise, as they seem to be happening, probably in 2022, what will that do to prices and perceived costs, as higher rates mean higher monthly payments, etc.?

    4. Will prices fall, and if so, why, and for how long? : Since then, prices have risen so quickly, and so much, could they come down, at some point? Although, historically, house prices increase with inflation, this increase was not significant, linked to inflation! While it is possible we will see a decrease, most believe it will level off and become, more like we have witnessed, historically, so any period of price declines will most likely be somewhat short!

    Given that, for most, their home represents their most important individual financial asset, doesn’t it make sense for potential owners/buyers to become better educated consumers? Will you pay more attention to possibilities and realities?

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