Wondering What’s Going on with Home Prices?

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Real Estate

The supply of homes for sale remains low in many areas, which has contributed to the increase in home prices. This has been driven in part by a shortage of new construction, as well as homeowners choosing to stay in their homes longer and delaying the sale of their properties.

Higher mortgage rates can also impact home prices by reducing demand. As of February 2023, mortgage rates have risen slightly from historic lows seen in 2020 and early 2021, but they are still relatively low by historical standards. Nonetheless, rising rates can make homes less affordable for some buyers and may contribute to a slowdown in price growth.

Overall, while the U.S. housing market has experienced significant price increases in recent years, the pace of growth has moderated somewhat in 2022. Low inventory and rising mortgage rates continue to be factors to watch in the coming months. As always, it's important to consult with local real estate professionals for the most up-to-date information on home prices in a specific area.