Here are three reasons why we're seeing prices rise like we are.
Why are real estate prices rising so rapidly? Many factors contribute to this trend, but today I’ll share three major reasons why we’re seeing prices rise like we are.
1. A lack of inventory. High demand and low supply mean prices are on the rise. If you’re thinking of selling, it’s a great time to sell. If you’re buying, it’s tough, but there are still ways to do it.
2. Interest rates are declining. Rates are lower than they were a year ago, meaning that monthly payments are affordable. You also have a buyer pool that can afford to pay more. If you’re a buyer and you can lock that rate in for 30 years as these prices continue to rise, you’re going to be better off buying today than you would be next year or the year after.
3. Building costs are rising. Just go to Lowe’s and look at the price of lumber and other building materials. The cost of all building materials has gone up, and so building costs increase with them.
To sum up, we have low inventory and builders need to build more, but it costs them more to put that house out than it did before. This means buyers are going to have to pay more for new construction, but again, as long as interest rates are low, you can get into a new-build with a payment that works for you. If this trend continues, we’re going to continue to see house prices rise.
If you’re in the market, reach out to us and we’ll be glad to tell you what’s going on in your specific area or your specific price range if you’re looking to buy. If we can do anything for you, a friend, family member, or coworker, let us know.