Interest rates, which are used to determine mortgage rates, and the availability of commercial and investment properties on the market are the main factors influencing the US real estate market. The median price of an existing home in the United States increased by 16.9% in 2021 to $346,900, while sales of 6.12 million homes reached a record high since 2006.
The 15-year high in sales, low foreclosure rates, robust price and rental increases for single-family homes, investment properties, and commercial spaces, and record-low mortgage rates all propelled the market.
Economists and analysts predict a cooling of the US housing market in 2023, but they disagree as to whether prices will continue to climb relative to prior years.
The US home market is expected to see steady prices over the next five years, either rising or staying the same. Zillow projects that property values will rise by 5.5% in the upcoming year, which is less than the 16.9% growth that was observed in 2021. Home values are expected to rise by 3.5% in 2023, 3.4% in 2024, 3.3% in 2025, and 3.2% in 2026, according to Zillow’s predictions. The survey also predicts that there will be fewer homes available for purchase, which will drive up costs.
Forecasts indicate that the US home market will see price growth over the next five years.
Real estate prices are predicted to rise despite low mortgage rates. Although mortgage rates have been at all-time lows for a while, a number of experts believe that they will start to gradually increase in the years to come. Property investing is best done now!
It’s crucial to remember that many specialists advocate investing in real estate, notwithstanding the prediction.