Home Prices Are On The Rise! It’s no secret that home prices across the nation have been on the rise, especially in 2015 alone. A number of different factors contribute to the rise in price, and they are not all necessarily as bad as people make them out to be. As we draw nearer to the end of the first quarter of 2016, we’ve continued to see costs rise, and there is no telling if or when they will decline. Here are four things to know about the rise of home prices in the United States.
What contributes to the rise in home prices?
There are a number of things that contributed to the rise of home prices. Among them, steady job growth, low mortgage rates and tighter inventories. Last year the local real estate market was moving very quickly. Homes were flying off the market with multiple offers in just a few hours. This year is shaping up to be the same experience. Low inventories lead to homes selling VERY quickly in most areas.
What is the benefit?
The benefit of the rising price in homes is that it will actually increase the home’s equity and help bring some homeowners above water. Across the board, people with a lot of equity are more likely to make moves that will help push them up the economic ladder.
Cities versus suburbs
With the rise of housing costs comes the debate of whether you should live in the city or suburbs. The high cost of living in cities across America, combined with the less expensive gas prices, are almost forcing people into suburbs; which in turn drives the price of homes in the area(s) up.
What do we prepare for?
A lot of homeowners and people in general expect home prices to continue to rise in early 2016. However, there currently isn’t data available to confirm this claim. Likely, the continuous rise in home values throughout 2015 and current limited availability will deter people from buying a home in the near future.
While the price of homes was on the rise in late 2015, only time will tell where the housing market in 2016 will take us. One thing is for sure, the housing market has seen a vast improvement from the housing crash that set off the recession. For more information about the increase in home prices, visit here.