Are Home Prices Still Rising?
The topic of conversation in almost every age group above 18 is the same; "When will home prices stop going up?” People are constantly wondering will prices keep going up? Will interest rates keep soaring? Based on the market research done by the Steph and SueAnn team at RealtyOne distinction we found some vague answers.
The Federal Reserve is trying to cool the market by increasing interest rates. Lenders presume that interest rates will continue to soar until September, up to at least 6.5%, and then start to fall back down. Utah house prices are high due to the insane growth in the West and a shortage of homes.
Economists are saying that a similar housing bubble such as the one that happened in 2007 is highly unlikely. This is due to a plethora of factors such as banks having stricter restrictions on who can get a loan. Though experts predict a different kind of housing bubble to occur1, we are unsure what kind of bubble is to occur.
If you live in Utah or are planning to move you are probably wondering when prices will go down. Though economists, agents, and lenders are unsure that prices will go down. But there has been a significant decrease in the amount of people qualifying for loans due to interest rates going up to 5% in March. This leads to less people being able to afford monthly mortgages and leading to a 16% decrease in sales.
McKellar, K. (2022, May 20). Mortgage costs are up $1,000, yet Salt Lake Homes still selling in just 5 days. Deseret News. Retrieved June 7, 2022, from https://www.deseret.com/utah/2022/5/20/23132563/housing-market-bubble-crash-cooling-price-increases-drops-utah-the-west-salt-lake-city-county
McKellar, K. (2022, March 31). A U.S. housing bubble is brewing, researchers say. but it's not the 2000's Bubble we know. Deseret News. Retrieved June 7, 2022, from https://www.deseret.com/utah/2022/3/31/23004521/housing-market-us-bubble-brewing-federal-reserve-dallas-research-but-not-the-bubble-we-know-crash