The housing market in the United States is in an exciting state of transition. Although many so-called “housing bubble boys” have speculated that home prices will crash, the opposite is true. Despite short-term fluctuations, prices have actually firmed up over the course of the last year. This stability is a result of several economic factors that are working together to create an increasingly solvent market.
A variety of factors, including population growth, low mortgage rates, increased employment prospects, and healthy demand, have led to this rise in home prices. The population of the United States has increased by an estimated 0.7 percent over the course of the past 12 months, creating an ever-present need for more housing. Low mortgage rates, currently at their lowest point in decades, are also driving more buyers into the market. Furthermore, the job market has seen an influx of new income earners, who are in turn able to purchase homes. Finally, demand for houses is high and increasing year over year.
In summary:
• Population growth of 0.7% over the past 12 months has increased the need for housing
• Low mortgage rates create opportunities for new buyers
• Increasing job prospects are allowing more people to enter the housing market
• Demand for houses is high and increasing year over year
You can read this full article at: https://www.housingwire.com/articles/why-higher-rates-arent-crashing-home-prices/(subscription required)
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