Why Home Prices Keep Rising Despite Rate Hikes

The Expert Podcast

Introduction to the Current Real Estate Climate

• Higher interest rates and inflation have created a challenging environment.
• New dynamics in home values since January.
• Market Trends and Key Facts
  • Home prices surged 20% in March despite rising interest rates (CNBC report).
  • Biggest price spike of the century occurred even as rates doubled.
  • Experts are uncertain when prices will drop, and historically, they rarely do.
• Demand and Inventory Challenges
  • Genuine demand and lack of inventory drive price increases.
  • Emotional toll on buyers: 61% of millennials and 65% of Gen Z cried during the home-buying process.
• Sellers and Competitive Offers
  • In April, 60% of sellers received at least two offers.
  • Half of homes sold above asking price, even after rate hikes.
• Advice for Buyers
  • Barbara Corcoran suggests: "Get in the game."
  • Start with what you can afford and trade up over time.
  • Focus on meeting your family’s needs rather than trying to time the market.
• Perspective on Homeownership
  • Owning a home provides stability, regardless of market fluctuations.
  • Temporary drops in home value don’t directly impact your financial situation unless you sell.
• Opportunities in the Market
  • Many houses remain unsold due to minor cosmetic issues.
  • These properties can be purchased without competition and transformed to meet your needs.
• Closing Thoughts
  • Home prices surged 20% in March, proving waiting may not lower prices.
  • Share your opinions in the comments.
  • Stay tuned for our next episode featuring six houses under $200,000!

Tune in to learn how to navigate this challenging yet opportunistic real estate market!