Finally, a Change in the Housing Market – but Is It What You Expected?
It looks like 2021’s housing market will repeat itself through most of 2022 thanks to the continued demand for homes to purchase, low foreclosure rates, and another solid year of growth in home value.
What’s new, however, is that mortgage interest rates are creeping upward, which will result in buyers adjusting their budgets because the increased rates will decrease their buying power. Typically this results in buyers being more discerning with their funds, and while there is still a surplus of buyers at every price point, there may be more instances where prices will need to decrease in order to match buyers’ budgets. It is doubtful that this will lead to home prices matching what they were five years ago, but the potential for an adjustment in pricing is definitely there.
Meanwhile, inventory remains low. There are plenty of lovely homes owned by lovely people…who would love to adjust their living space to better suit their family’s needs, but who are not inspired enough to make a move based on what is being offered in today’s market.
So here we sit, and the Groundhog Day of the housing market is upon us. Some of the dialogue has changed but in the end, the outcome is the same. Changes happen, growth happens, and Hendricks County is changing and growing every day. At some point things will level out, but today is not that point in time.