Recent housing data show a cautious but growing optimism for future housing market activity. Indicators are inching toward the development of a “seller’s market”, where the bargaining advantages lie with the seller. The main concerns influencing a forecast are increasing rental rates, mortgage rates beginning to rise, and home inventories remaining relatively stable.
There are several reasons why these issues are major factors for the consumer in deciding whether they will buy a house. Increasing rental rates creates an incentive and desire to own. Why pay high rent when the opportunity to pay an equal or lesser amount for a home exists? Mortgage rates beginning to increase also provide an incentive to buy now while rates are at historically low levels. With home inventories remaining stable, and a desire for more buyers to become homeowners, comes the supply and demand story. More demand with stable supply causes prices to increase, creating the seller’s market.
How does this affect you?
Whether you are a homeowner or looking to buy, the benefits of homeownership are strong and the forecasts show that regardless of your position, you can benefit. Contact one of our Wealth Management Advisors to examine your financial position and set up a plan today.
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