Home Prices
Are Home Prices Still Going Up?
Given the war in Ukraine, rising mortgage rates, COVID, inflation at 7.9%, etc., you might be wondering if home prices will still be increasing or if we are in a housing bubble that might burst at any moment. We are definitely NOT in a housing bubble. It is simply the law of supply and demand at work where there are more buyers than houses for sale. The lack of inventory means buyers will be forced to bid up prices if they hope to land a home. In NH, new listings are down 17% thru Feb., the volume of sales is down 17.7% and the median sales price at $400,000 is up 14% compared to the first two months in 2021. Back in Dec., economists were predicting home prices to rise at a more moderate rate between 5% and 6%. Zillow is now predicting prices to be up 17.3% at year end. While it’s difficult to really say how much increase there will ultimately be, the forecast is definitely upwards as spring is shaping up to be one of the hottest markets yet. Home ownership builds wealth – a homeowner’s net worth is 40x greater than that of a renter. It also is one of the best investments against inflation. Whether a first-time buyer or looking to sell to buy a home that better suits your needs, waiting will cost you. Contact me to find out what steps you should be taking now.
Donna Forest 603.731.5151~donna@donnaforest.com