There are five moving targets in home buying and selling:
· Interest rates
· Taxes as affected by value
· Insurance as affected by value
· Appraisals as affected by historical prior comparable sales
· Supply – existing homes vs new homes
As demand begins to build, interest rates will be allowed to return to the dictation of the market.
Supply of new homes will increase to meet market demand, and thus will complete with existing homes.
Taxes and insurance on all real estate will move with the direction of comparable sales.
The most troubling component will be the results of the “fake” interest rates that have been in effect, subsidized by the Fed. That cannot continue indefinitely.
It will be interesting to see how the total market reacts as these pieces of the puzzle find their final resting place.
Because the fact remains, the market buys homes based on the amount of monthly payment buyers can afford.
William S. Cherry & No Company
America’s Wealth Coach
972 677-7028
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