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Market Update: Why Home Prices Keep Hitting the Sky
So, you’ve noticed home prices are going up faster than a helium balloon on a windy day, huh? You’re not alone. There are a few reasons for this never-ending climb.
Limited Supply: Less is Not More
First off, we’ve got a classic case of Economics 101: low supply, high demand. Builders can’t seem to lay bricks fast enough to keep up with the appetite for new homes. Less inventory means higher prices. Simple as that.
Interest Rates: High Rates are not stopping the party.
High interest rates are usually like Kryptonite for most homebuyers. But not in this market. homebuyers have been like the Man of Steel powering through this market despite the higher rates we’ve seen in 20 years. This just adds fuel to the home price fire.
Inflation: The Market Silent Price Hiker
Inflation’s not just for balloons and tires, folks. As the cost of materials and labor goes up, so does the cost of your future crib. Builders pass on the extra costs to buyers, like a game of financial hot potato.
The Remote Work Boom
With more people working from home, space has become a hot commodity. A two-bedroom apartment just doesn’t cut it when you need a home office or five. The desire for bigger homes is yet another factor pushing up prices.
Nobody has a crystal ball, but if you’re in the market, it’s smart to act sooner rather than later. Lock in your monthly payment and escape the rising rent. Wanna chat more? You can talk or text us at 916-570-6979 or schedule an appointment at www.meetnewway.com.
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