Owning a home is everyone’s dream. Nothing beats going home to your own house, where you can do anything.
If you’re one of those people thinking of buying a home this year, you’re in for a treat. According to researchers, house prices will start to normalize this year.
What factors affect house prices?
Several factors affect house prices. But on a national scale, phenomena like inflation, a boost in the economy, a high employment rate, and an increase in housing demand can directly affect housing prices all over the country.
The onslaught of the pandemic has caused a significant deterrent in the world economy. This results in an increased inflation rate. Luckily, the presence of the internet has dramatically helped in helping the world economy to bounce back.
What happened to house prices last year?
To determine the up or downtrend of the housing sector, it’s essential to analyze the house pricing from last year.
2021 recorded a sky-high demand for housing, resulting in increased housing and mortgage prices. Since there is a low supply of housing compared to the market, property owners use it to boost the price tags of their properties.
According to the National Association of Realtors, home sale prices will increase up to 14.6% in 2021. A $360,00 property gained higher equity by up to $46,000 by December. There are even higher figures and estimations for the world’s major cities, such as New York and Las Vegas.
Will home prices continue to rise this year?
Like in the stock market, there’s a high possibility that housing prices will normalize after their surge in 2021.
Danielle Hale, Realtor.com’s chief economist, predicts U.S. home prices will grow by 2.9%. “We expect home prices to slow down because we expect mortgage rates will rise, and higher mortgage rates change how aggressive buyers can be with their offers,” Hale says.