Here’s what to look out for if you’re going to buy or sell your house
Over the last year we’ve all spent more time in our homes than ever before. It’s given us a new perspective on the places where we live, but not necessarily appreciation. Little compromises we lived with or didn’t even notice are now glaring flaws we no longer want to live with. More people are buying and more people are selling, so it can be hard to tell which way the market is leaning.
Have house prices frozen?
If you’ve been keeping an eye on house prices, you’ll begin to notice trends in the prices. If prices are consistently going up over a long period of time and suddenly that growth slows or freezes, it’s a sure sign that prices are going to start going down.
Are houses coming on the market quickly?
The more “for sale” signs popping up in the neighborhood you’re looking at, the more likely it is that prices are going to start dropping. The housing market is subject to the law of supply and demand just as much, if not more than, every other market. Now in the wake of lockdowns and the rise of being able to work from home has people leaving cities in droves looking for more space. The more frequently homes appear for sale and the longer they stay, the more likely it is the prices are going to start going down.
How are the interest rates?
As interest rates climb, people’s ability to purchase falls. Eventually this pushes the prices for homes down so people can actually buy them. Interest rates fluctuate little bits here and there but there are larger and overarching trends that will have lasting impacts.
What’s Unemployment at?
This one is less true right now than usual, with a fair reasoning. The Covid-19 pandemic put a lot of people out of jobs but the Covid Relief programs (the stimulus as well as the extended unemployment benefits) have gone a long way to keep people in their homes and solvent while we ride this storm out. As more people get vaccinated and more people are able to find new jobs or return to old ones it’s going to be a better gage for house prices.
More questions about home prices falling?
At Frank B. Pallotta Law we are licensed Real Estate Lawyers with 20 years of experience helping our clients in Georgia navigate the closing process. Reach out to us with your questions. We’re here to help.