“Home price appreciation has been re-accelerating since November. “
As mortgage rates started to rise this year, many homeowners began to wonder if the value of their homes would fall. Here’s the good news. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. The latest data on home prices seems to confirm that trend.
According to data from CoreLogic, home price appreciation has been re-accelerating since November. The graph below shows this increase in home price appreciation in green:
This is largely due to an ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is high. As mortgage rates started to rise this year, many homebuyers rushed to make their purchases before those rates could climb higher. The increased competition drove home prices up even more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:
“Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge.”
And experts say prices are forecast to continue appreciating, just at a more moderate pace moving forward. A recent article from Fortune says:
“. . . the swift move up in mortgage rates . . . doesn’t mean home prices are about to crash. In fact, every major real estate firm with a publicly released forecast model . . . still predicts home prices will climb further this year.”
What This Means for You
If you’re thinking about selling your house, you should know you have a great opportunity to list your home and capitalize on today’s home price appreciation. As prices rise, so does the value of your home, which gives your equity a big boost.
When you sell, you can use that equity toward the purchase of your next home. And at today’s record-level of appreciation, that equity may be enough to cover some (if not all) of your down payment.
Bottom Line
History shows rising mortgage rates have not had a negative impact on home prices. Now is still a great time to sell your house thanks to ongoing price appreciation. When you’re ready to find out how much equity you have in your current home and what’s happening with home prices in your local area, let’s connect.
To view original article, visit Keeping Current Matters.
Two Reasons You Should Sell Your House
Wondering if you should sell your house this year? As you make your decision, think about what’s motivating you to consider moving and let’s connect today!
How Changing Mortgage Rates Can Affect You
It’s critical to lean on your expert real estate advisors to explore your mortgage options and understand what impacts mortgage rates.
We’re in a Sellers’ Market. What Does That Mean?
Right now, there are still buyers who are ready, willing, and able to purchase a home. List your home at the right price 🙂
How Homeownership is Life Changing for Many Women
The financial security and independence homeownership provides can be life changing.
Get Ready: The Best Time To List Your House Is Almost Here
If you’re thinking about selling this spring, it’s time to get moving – the best week to list your house is fast approaching.
Why Buying a Home Is a Sound Decision
Experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate.