Buyer demand and home value appreciation in 2020 and 2021 were the highest that I have ever experienced during my 36 years in the real estate industry. There are many reasons why the housing market skyrocketed, but there are two reasons that really stand out above the others.
- Record low mortgage interest rates made buying a home MUCH more affordable, and that enabled buyers to purchase higher valued homes without feeling the financial pinch because with low mortgage rates came low monthly payments on premium-priced homes.
- A limited supply of available homes combined with record-setting buyer demand not only drove up home prices and many of the homes for sale received multiple offers and a substantial number of those homes sold above their asking price.
The housing market has experienced some changes in 2022 compared to 2020-2021. The biggest change is related to the Federal Government increasing interest rates which has created a shift in the U.S. housing market. When the interest rates on mortgages/home loans increased, it caused many homebuyers to no longer qualify for the home they wanted to buy. Many buyers have been unable to find the home they want in the lower price range that they now qualify for, and that has caused a softening in buyer demand in many different price ranges across the country.
You may be wondering if home prices are coming down? The answer is YES, but likely not in the way you might be thinking. If you have your house on the market right now and it's overpriced, the market won't absorb it and it likely won't sell because the market in 2020-2021 was very different than the housing market of today. Overpriced homes are coming down in value because most of them just aren't selling the way they were just a year or two ago.
Here's some good news, the buyer demand remains strong, but it is strong for houses that are priced right based on the current market conditions that exist today. When selecting a listing price for your home you really should be looking at the most current similar home sales that have taken place in the last month or two. If you do this you should be fine because buyer demand is still active, it is just not strong for houses that are overpriced.
Would you like to know what your Knox County Ohio home would sell for in the current housing market? Call or message us at 740-397-7800.
The Sam Miller Team of REMAX Stars Realty 740-397-7800 http://www.SamMillerSells.com