According to Mike Simonsen, CEO of Altos Research, national home prices are not experiencing a decline, as indicated by various data points. Simonsen sheds light on the factors that contribute to this trend and provides insights into the stability of the housing market.
• Local housing supply and demand dynamics: Simonsen highlights the importance of understanding the local market dynamics that drive home prices. While some areas might experience fluctuations, overall, the national market remains steady.
• Low mortgage rates: The continued low mortgage rates are contributing to the stability of home prices. These rates make homes more affordable, boosting demand and keeping prices steady.
• Job growth and economic stability: Strong job growth and a stable economy have played a significant role in supporting the housing market. With increased employment opportunities, more people can afford to purchase homes, preventing a decline in prices.
• Lack of distressed properties: The absence of a significant number of distressed properties in the market has contributed to price stability. Without a surplus of discounted homes, the market remains balanced.
Simonsen’s analysis provides valuable insights into the current state of national home prices, emphasizing the importance of understanding local trends and considering broader factors like mortgage rates, job growth, and property supply. While some regions may experience isolated fluctuations, the overall picture suggests a stable housing market across the country.
You can read this full article at: https://www.housingwire.com/articles/will-home-prices-continue-to-grow-in-2024/(subscription required)
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