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Will Prices Continue to Rise?

Home prices have continued to rise in 2021, due to a number of different factors. But can this trend continue? There are signs that the market may begin to shift soon – here is what you need to know:

1. Interest Rates Have Started to Rise:

Though the increase has been minimal thus far, this rise may eventual cause a decrease in the number of buyers who are able to qualify for a loan. Ultimately, higher interest rates means fewer buyers.

2. Home Sales are Up, but Listings are Down

The home sales boom that happened in 2020 hasn’t been seen since 2006. Yet those numbers may have been even higher, if the lack of inventory hadn’t held the market back. And while existing home sales remain strong, it is the new construction sales that have seen a significant dip. Why is that?

3. Building Costs Have Risen

Homebuilder confidence appeared to be at an all time high going into the new year. As pre-existing homes were snatched off the market, more and more buyers turned to building new.

Then January saw the rising cost of lumber. The high material costs coupled with labor shortages and a lack of affordable land has significantly delayed delivery time, which has in turn increased home prices even more, as new homes are getting even more expensive and taking longer to build.

So what does this mean for you?

As long as demand remains strong and home inventory stays low, sellers will continue to have a great advantage in our market. Even with slowly rising interest rates, we can expect that short sales with multiple offers will continue to stay the norm.

In these kinds of conditions, how can you be sure you’re getting the best possible offer? Getting the most out of a multiple offer situation is a negotiating art form that takes knowledge and experience. With more that 35 years of experience and nearly 100 homes sold in the last year, we have exactly the know-how necessary to help you get the most for your home!

If you are thinking about selling your home and are interested in finding out what it could be worth in today’s market, then contact us to schedule a FREE consultation with one of our team members!

If you have any questions about potentially selling your home, please give me a call at (541) 740-7722 at any time. I’m talking to both buyers and sellers in the Mid-Valley everyday, and I can help provide you with the knowledge to make the best decision for you.

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