According to Keeping Current Matters, homeownership offers more than just a place to live—it’s a powerful way to build financial security. Over the years, as you pay down your mortgage and home values rise, you accumulate home equity, a valuable asset that can open doors to exciting opportunities.   What Is Home Equity? Home equity is the difference between your home’s current market value and the amount you still owe on your mortgage. It grows over time as you make payments and as the market value of your home increases. For many homeowners, this equity represents a significant portion of their overall wealth.   How Much Equity Do Homeowners Have?    Recent data reveals that homeowners have gained remarkable equity in their homes. This increase is due to consistent home appreciation and responsible borrowing practices. If you’ve owned your home for several years, you might be surprised by how much equity you’ve accumulated—equity that could help you achieve your financial and personal goals.   What Can You Do With Your Equity?   Your home equity can be a powerful tool for:   - Funding renovations: Enhance your home’s value and functionality.   - Investing in another property: Expand your real estate portfolio or purchase a vacation home.   - Consolidating debt: Simplify finances by using equity to pay off high-interest loans.   - Securing retirement income: Tap into equity as part of your long-term financial planning.   How to Access Your Equity    There are various ways to unlock your home equity, including home equity loans, lines of credit, or refinancing. Each option has its benefits and considerations, so it’s essential to consult with a trusted financial advisor or real estate professional to find the best fit for your needs.   Curious About Your Home’s Equity?    If you’ve been wondering how much equity you’ve built, now is the perfect time to find out. Understanding your home equity can help you make informed decisions about your future, whether you’re planning to move, renovate, or invest.   Ready to explore your home equity options? Contact us  today, and let’s discuss how you can make the most of this valuable asset. Together, we’ll create a strategy tailored to your goals.    Let’s turn your home equity into opportunities! Source: keepingcurrentmatters.com

According to U.S. News, the future of mortgage rates is a hot topic for anyone considering buying, selling, or refinancing a home. The outlook for 2025-26 brings exciting opportunities for those ready to make savvy financial decisions. Let’s explore what lies ahead for mortgage rates, the Federal Reserve’s influence, and actionable tips for navigating this evolving market. Mortgage Interest Rate Forecast for 2025-26 Experts predict that mortgage rates will stabilize in 2025-26, offering a balanced market for buyers and sellers. While rates may not drop to the historic lows seen during the pandemic, they’re expected to hover at moderate levels. This creates an environment where buyers can confidently plan their home purchases and sellers can anticipate consistent demand. When Will Mortgage Rates Go Down? The big question for many is, "When will mortgage rates decline?" While significant rate drops aren’t guaranteed, some analysts suggest that late 2025 or early 2026 could bring slight reductions, especially if inflation eases and the economy steadies. For buyers and homeowners, this means it’s essential to monitor trends and act when favorable rates become available. The Federal Reserve’s Role in Mortgage Rates The Federal Reserve plays a significant role in shaping mortgage rates through its monetary policies. While the Fed doesn’t set mortgage rates directly, its decisions on interest rates and inflation targets heavily influence them. As the Fed takes a measured approach to maintain economic stability, this could help keep mortgage rates in a manageable range for the foreseeable future. Tips for Home Buyers and Sellers in 2025 For home buyers, preparation is key. Strengthen your credit score, save for a larger down payment, and get pre-approved to secure the best possible rate. Acting quickly when rates are favorable can save you thousands over the life of your loan. For sellers, focusing on home improvements and pricing competitively will help attract motivated buyers. Highlight energy-efficient features and move-in-ready conditions to make your property stand out in a market that values convenience and sustainability. Mortgage Refinance Rate Forecast If you’re considering refinancing, 2025-26 may present golden opportunities. With rates stabilizing, homeowners can refinance to reduce monthly payments, switch to a fixed-rate loan, or tap into home equity for other investments. Acting during periods of slight rate decreases can maximize your savings and improve your financial outlook. Prepare for Success in 2025-26 The coming years promise a stable and exciting period for the housing market. Whether you’re buying, selling, or refinancing, staying informed and working with knowledgeable professionals will help you make the most of the opportunities ahead. Ready to take the next step? Contact the Benson Group today to discuss your options and create a plan tailored to your goals. Source: U.S. News

KEY POINTS “House hacking” refers to renting out a portion of your home for an additional stream of income. More than half of millennial and Gen Z homebuyers say house hacking is a “very” or “extremely” important opportunity, according to a report by housing market site Zillow. That extra money can “help make those dreams of homeownership penciled into reality, given that there’s so many affordability constraints on the current market,” said Manny Garcia, senior population scientist at Zillow. Gen Z and millennials are “hacking” the housing market as high prices and interest rates make affordability difficult. The term “house hacking” refers to the practice of renting out a portion of your home or an entire property for an additional stream of income. Almost 4 in 10, 39%, of recent homebuyers say the practice represents a “very” or “extremely” important opportunity, according to a new report by housing market site Zillow. That share is up eight percentage points in the past two years. Younger generations are especially keen on the idea. In Zillow’s survey, more than half of millennial, 55%, and Gen Z home buyers, 51%, expressed positive views on house hacking. Zillow polled more than 6,500 recent homebuyers between April 2023 and July 2023. Respondents were adults who moved to a new primary residence they purchased in the past two years. The additional income from house hacking can “help make those dreams of homeownership penciled into reality, given that there’s so many affordability constraints on the current market,” said Manny Garcia, senior population scientist at Zillow. The median sale price for a house in the U.S. was $413,874 in October, up 3.5% from a year ago, according to a report by real estate site Redfin. The average rate for 30-year mortgages hit 8% in October, the highest level seen in 23 years, according to Bankrate. To compare, rates bottomed out slightly below 3% in January 2021. While renting out portions of a newly owned property can help offset higher costs of a home, potential buyers will need to make a few considerations beforehand. ‘You need to earn six figures to afford a starter home’ As home prices and interest rates have risen, potential homebuyers need a salary of $114,627 to afford a median-priced house in the U.S., a recent report by Redfin found. Redfin’s analysis used the median home price of $420,000 in August. “In many places, you need to earn six figures to afford a starter home, so it makes sense for young people who are seeing how expensive homeownership is to want options,” said Daryl Fairweather, chief economist at Redfin. With few small starter homes available, a millennial or Gen Z buyer may have to jump on a more expensive home than they would have wanted, Fairweather said. “Having the option to rent or have a roommate is important in an environment where there just aren’t that many small homes for sale,” she said. House hacking may help those homeowners by providing them additional income for expenses or even help cover the mortgage. More apartment buildings are available The opportunity to house hack may be short lived. In some markets, new apartment buildings are under construction that will have available units next year, especially smaller, one bedrooms. Rental market inflation, which had been stubbornly high for much of 2023, has cooled due to new inventory, pushing the rental vacancy rate up to 6.6% in the third quarter, the highest level since the first quarter of 2021, according to Redfin data. “We’ve already seen rent prices stabilize, especially for single occupancy rentals,” Fairweather said. It’s going to be harder to rent out a room as more rentals become affordable, she added. Despite the growth in available apartments, the U.S. is facing a “massive shortage of housing, especially affordable housing options,” said Zillow’s Garcia. “If you’re pricing your home competitively, renting out can be a reliable source of income because there’s no shortage of people looking for a place to live,” he said. What to consider before ‘house hacking’ While renting out a portion of your home can serve as an additional income, interested buyers would still need to gather a sufficient down payment and proof of income to show they can already afford the monthly payments. “If you’re going to rely on rental income in order to qualify, you’ll have a problem,” said Melissa Cohn, mortgage banker and regional vice president of William Raveis Mortgage. “They need to prove they can afford the mortgage without the rent,” she said. Banks won’t consider potential rental income and they will require the buyer to be able to qualify for the financing without the support of potential rental income, she said. There is another risk to buying a bigger house with the intention of renting out part of it: You could wind up stuck with an expensive mortgage and a room you can’t rent out. If renting out part of your home — or the entire property — is optimal for you, do your research on what the current rate is for your type of home. Consult with rental managers who can help draft leases and give you a good estimate on the going rate in your area, said Garcia. “There’s a lot of homework to be done to make sure that you’re pricing correctly when you’re posting your unit for rent,” Garcia said. Additionally, keep in mind that there is a big chance the house you are considering may be subject to local ordinances on renting or homeowners association regulations. -------------------- Source: CNBC

The higher rates, combined with high home prices, are creating a housing market of “haves and have-nots,” says NAR’s deputy chief economist. Home buyers are being forced to adjust to what is becoming a new norm: Mortgage rates above 7%. At this week’s average of 7.19% for a 30-year fixed-rate mortgage, as reported Thursday by Freddie Mac, the typical monthly mortgage payment on a median-priced home of $413,500 would translate to $2,243, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “The elevated rates impact where a buyer can purchase and how much home they can afford today,” Lautz says. Indeed, the average loan size on a purchase application last week soared to $416,800—the highest level in six weeks, the Mortgage Bankers Association reports. The higher rates and home prices are creating a housing market of “haves and have-nots,” Lautz says. “The typical first-time, single or minority buyer has no ready cash to purchase a home,” she adds. Meanwhile, current homeowners can leverage the record-high equity in their homes when purchasing again. They’re part of a group of buyers fueling the all-cash market, where higher mortgage rates are having no impact. In August, all-cash transactions comprised 27% of the housing market, NAR’s data shows. Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 21: 30-year fixed-rate mortgages : averaged 7.19%, rising slightly from last week’s 7.18% average. A year ago, 30-year rates averaged 6.29%. 15-year fixed-rate mortgages: averaged 6.54%, increasing from last week’s 6.51% average. Last year at this time, 15-year rates averaged 5.44%. ----- Source: nar.realtor

KEY POINTS After a year full of record-high interest rates and home prices, experts say there are signs of improvement for the housing market in 2024. In December, the average mortgage rates dropped below 7% for the first time since August and after an 8% peak in October, which pushed housing costs to the highest level since 2000. “The decline poses good news for buyers,” said Jessica Lautz, deputy chief and vice president of research at the National Association of Realtors. After a year full of record-high interest rates and home prices, experts say there are signs of improvement for the housing market in 2024. In December, the average mortgage rates dropped below 7% for the first time since August and after an 8% peak in October, which pushed housing costs to the highest level since 2000. The average rate on a 30-year fixed rate mortgage dropped to 6.95% from 7.03% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.31%. Meanwhile, the 15-year fixed rate mortgage jumped to 6.38% from 6.29%. “The decline poses good news for buyers,” said Jessica Lautz, deputy chief and vice president of research at the National Association of Realtors. Interest and mortgage rates will slowly decline, giving people a “little bit more room in their budgets” when it comes to mortgage payments, experts say. Additionally, inventory is growing as new listings creep back up, said Nicole Bachaud, a senior economist at housing site Zillow. Lower interest rates should come as encouraging news for homebuilders. “It should be easier for builders as rates go down, as they need to borrow to build,” said Lautz. Homebuyers should see a greater supply as more homes will be built, she said. However, consumers may still feel discouraged, added Lautz, as affordability may still be a challenge. “We’re expecting home price appreciation to stay flat for the next year nationally, so prices aren’t really going to move much from where they’re at now,” Bachaud said. High costs kept would-be buyers as renters Homes were 52% more expensive than rentals this year, the highest gap on record, according to the Zumper Annual Rent Report for 2023. High costs in the buying market have delayed homeownership for many buyers and kept inflation-strapped consumers in the rental market, some explained. The national rent price for a one-bedroom apartment is $1,496, down 10% from a year ago. The last time there was a decline was during the pandemic, from July to October 2020, Zumper found. “Over the course of the last few years, there were actually a lot of buildings in the rental sector, so that may have helped to alleviate rental prices. But they’re still at a high price point,” Lautz said. Lautz expects more movement in the rental market next year as many young adults look for a place to live. While most young adults either stayed with parents or paired up with roommates during the pandemic to relieve costs, they might seek independence next year, whether because “a CEO [is] saying you have to come back into the office or they’re ready to move out,” said Lautz. New York City is seeing a surging demand for rental housing in commutable areas with easy access to downtown and midtown Manhattan in 2024, according to data from StreetEasy, Zillow Group’s New York City real estate marketplace. “That’s an indication that people are looking to move back closer to the workplace or closer to more amenities,” Bachaud said. “We’re expecting the rest of the country to follow that trend throughout the next year.” Record-high interest rates deterred more than 69% of renters from buying a home in 2023, a Zumper report found. These high costs are pushing the typical ages of renters and first-time homeowners upward. To that point, the typical head of household in a rental is 41 years old, up from age 40 in 2019 and age 37 in 2000, according to Zillow economist Bachaud. “Renters are getting older,” said Bachaud. “As long as affordability remains a big challenge, we will likely see renters getting older.” Meanwhile, the age of a typical first-time homebuyer is 35 years. In the 1980s, people bought their first homes at the age of 28, Lautz said. Market conditions and external factors, such as student loan repayments and child care costs, are delaying homebuying activity for many shoppers, Lautz said. Since many people cannot afford to buy a home, they are likely to consider renting a single-family home instead to achieve a similar experience. Renting over buying their first home Prices for single-family rentals are increasing faster than rent prices for multifamily apartment buildings, showing signs of high demand, said Bachaud. “That has a lot to do with affordability as people are priced out of being able to purchase a home. They’re still looking for that starter home experience,” she said. As long as people continue to be priced out of the market, would-be homebuyers will remain as renters, and Bachaud expects “to see more of that this year.” Even though affordability is expected to marginally improve over the next 12 months as rates continue to decline, the market is still far from where it was before the pandemic, she added. “Affordability is still a big challenge for a lot of households,” she said. ‘The American Dream is still owning a home’ While homeownership is challenging for many would-be buyers, it doesn’t mean people no longer aspire to own a home, said Bachaud. “The American Dream is still owning a home,” she said. “There’s a lot of pent-up demand for ownership; that isn’t going to go away. It might take longer for people to get and to be able to realize that dream.” Indeed, “homeownership is the number one way to build wealth in America,” said Lautz. Lautz explained that when you look at the typical homeowner, they have a net worth of just under $400,000 compared with the typical renter, who has just over $10,000, following the American dream of financial stability. “Folks will have to look elsewhere if they’re not looking at homeownership to find that,” Lautz added. Additionally, younger generations are still thinking about saving for down payments and planning for future housing, said Bachaud, meaning the demand for homeownership persists. She predicts a change in what homeownership will look like in the coming decades: “We’re kind of on that journey now.” For now, serious first-time homebuyers should consider jumping into the market as soon as February, while the market remains quiet, said Lautz. Lower rates may breed competitive bidding wars among strong buyers, so now may be the time. The National Association of Realtors forecasts mortgage interest rates will average 6.3% and estimates 0.9% increase for home prices in 2024, added Lautz. “First-time buyers stand a chance at this time period,” she said. “It’s a trade off: Do they want to run the risk of encountering higher competition when rates are lower or do they want to increase the probability of securing homeownership?” “Refinancing is always an option,” she said. ---------------------- Source: CNBC

Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership . According to the latest Home Buyers and Sellers Generational Trends Report from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents’ roofs to owning their own homes. If you’re a member of this generation, and you’re interested in pursuing your own dream of homeownership , here’s some information you may find helpful on why and where your peers are buying. The Reasons Gen Z Want To Become Homeowners A recent survey by Rocket Mortgage identifies some of the top motivators driving Gen Z buyers to purchase a home: “Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.” Another key reason the survey says Gen Z wants to buy is because homeownership can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs. So, if you’re ready to start a new chapter in your life or if you’re craving more stability , know that your peers feel the same way, and those motivators are why they’re turning to homeownership . Gen Z’s Next Stop: Where Are They Making Their Moves? If those reasons have you feeling ready to buy, here’s some information on where your peers are finding their homes that could help you with your search . According to a recent Lending Tree survey , Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s mortgage rates . Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree , explains : “ . . . they want to live in a city, but they also want to be close to nature .” Locating a home that offers both of those things requires expertise. Working with a trusted real estate professional can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with your goals . They’ll also be able to walk you through how things like remote work can help you cast a broader net for your search . Bottom Line If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, it’s important to connect with a trusted real estate agent. Their expertise will guide you to a home that fits both your lifestyle and your budget. ----- Source: keepingcurrentmatters.com

Source: keepingcurrentmatters.com The recent changes in home prices are top of mind for many as the housing market begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices. Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), explains : “ U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022 . While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.” Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall . What Does This Mean for You? If you currently own your house, you may be concerned about even the smallest decline in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic , shares : “. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak .” It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring. Bottom Line To understand what’s going on with home prices in your market and how they could impact your goals, contact a local real estate professional today. ----- Source: keepingcurrentmatters.com

Source: keepingcurrentmatters.com Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today’s low supply of homes for sale is still a sellers’ market. But what does that really mean? And why are conditions today so good if you want to list your house? It starts with the number of homes available for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers. What Does This Mean for You? When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, sellers are positioned to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, says : “Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.” Right now, there are still buyers who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the right price , it could get a lot of attention from competitive buyers. Bottom Line Today’s sellers’ market can be a great time for homeowners ready to make a move . Listing your house now will maximize your exposure to serious, competitive buyers. Connect with a local real estate professional to jumpstart the selling process. ----- Source: keepingcurrentmatters.com

Some Highlights Since inflation is increasing the cost of goods and services, it may make sense to look for an energy-efficient home. Energy prices have increased over the last year, so look for energy-efficient features in your home search. If you’re looking to buy a home this year, work with a real estate expert so you have a partner to help you consider which features are most important to you. ----- Source: keepingcurrentmatters.com

The National Association of Realtors (NAR) is set to release its most recent Existing Home Sales (EHS) report tomorrow. This monthly release provides information on the volume of sales and price trends for homes that have previously been owned. In the upcoming release, it’ll likely say home prices are down. This may seem a bit confusing, especially if you’ve been following along and reading the blogs saying home prices have hit the bottom and have since rebounded . So, why would this say home prices are falling when so many other price reports say they’re going back up? It all depends on the methodology of each one. NAR reports on the median home sales price, while some other sources use repeat sales prices. Here’s how those approaches differ. The Center for Real Estate Studies at Wichita State University explains median sales prices like this: “ The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.” Investopedia helps define what a repeat sales approach means : “ Repeat-sales methods calculate changes in home prices based on sales of the same property , thereby avoiding the problem of trying to account for price differences in homes with varying characteristics.” The Challenge with the Median Home Sales Price Today As the quotes above say, the approaches can tell different stories. That’s why median home sales price data (like EHS) may say prices are down, eve n though the vast majority of the repeat sales reports show prices are appreciating again . Bill McBride, Author of the Calculated Risk blog , sums the difference up like this: “ Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices.” To drive this point home, here’s a simple explanation of median value ( see visual below ). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median value (the middle one) is 10 cents. If you have two nickels and one dime, the median value is now five cents. In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change. That’s why using the median home sales price as a gauge of what’s happening with home values may be confusing right now. Most buyers look at home prices as a starting point to determine if they match their budgets. But most people buy homes based on the monthly mortgage payment they can afford, not just the price of the house. When mortgage rates are higher, you may have to buy a less expensive home to keep your monthly housing expense affordable. That’s why a greater number of ‘less-expensive’ houses are selling right now – and that’s causing the median home sales price to decline. But that doesn’t mean any single house lost value. When you see the stories in the media that prices are falling later this week, remember the coins. Just because the median home sales price changes, it doesn’t mean home prices are falling. What it means is the mix of homes being sold is being impacted by affordability and current mortgage rates . Bottom Line For a more in-depth understanding of home price trends and reports, reach out to a local real estate professional. ----- Source: keepingcurrentmatters.com

Some Highlights According to a recent Gallup poll, real estate has been voted the best long-term investment for 11 years in a row, beating gold, stocks, bonds, and more. Owning real estate means more than just having a home—it’s an investment in your future. That’s because it’s typically a stable and secure asset that tends to increase in value as time goes on. Connect with a local real estate agent if you’re ready to buy a home and invest in your future. ----- Source: keepingcurrentmatters.com

If you’re following the news today, you may feel a bit unsure about what’s happening with home prices and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an unnecessarily negative picture. If we take a year-over-year view, home prices did drop some, but that’s because we’re comparing to a ‘unicorn’ year when prices peaked well beyond the norm. To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here’s what the national data tells us. The graphs below use recent monthly reports from three sources to show the worst home price declines are already behind us, and prices are appreciating nationally. Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down ( shown in red in the graphs above ). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again. The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening – home prices are rising again . Craig J. Lazzara, Managing Director at S&P Dow Jones Indices , says this about home price trends: “If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.” Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available homes for the number of people who want to buy them. Even with today’s mortgage rates , there are more people looking to buy than there are homes available for sale. Mark Fleming, Chief Economist at First American , explains how more demand than supply keeps upward pressure on prices: “History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices .” Doug Duncan, Senior VP and Chief Economist at Fannie Mae , states home price growth is exceeding expectations thanks to that high demand: “. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .” Here’s How This Affects You Buyers : If you’ve been holding off on buying because you were worried the value of your home would go down, knowing home prices have bounced back should bring you some relief. It also gives you the opportunity to own something that usually becomes more valuable as time goes on. Sellers : If you’ve been waiting to sell your house because you were concerned about how changing home prices would affect its value, it might be a good idea to team up with a real estate agent to list your house. You don’t have to wait any longer because the latest data suggests things are turning in your favor. Bottom Line If you delayed your moving plans because you were concerned about home prices dropping, the latest data reveals the worst is already over, and prices are appreciating nationally. Partner with a local real estate agent so you know what's happening with home prices in your area. ----- Source: keepingcurrentmatters.com