The real estate industry is changing it seems. These changes are happening faster and faster and agents and clients alike are left wondering: what's next?
The Economy
Inflation has really taken it's toll on the real estate industry. With prices of everything rising and rising fast - the real estate industry has seen the changes too. For one, supply chain issues have spiked the price of lumber and other building goods. This alone makes building houses and home renovations tricky right now. Then there's the prices of the homes themselves to consider, or rental prices for that matter.
How Home Prices and Mortgages Are Responding
For most of 2021, interest rates were at record lows. This made buying "overpriced" homes more palatable and many refinanced their current loans. But now, and in the future, the federal reserve is raising interest rates. Even a 1% rise in rates can have substantial impacts on mortgage prices.
Home prices are still climbing in many places. Some real estate experts do say that prices will level out, or even drop, because of the change in interest rates, but only time will tell.
Then there's the other changes in real estate that keep happening faster and faster. Yes, technology, we're talking about you. Between Zillow, Redfin, and the speed of the internet - real estate is a game of instant gratification and who can move the fastest these days. Agents also have to grapple with new Covid-19 precautions/restrictions that are still lingering. All in all, this fast paced industry continues to show us changes at a rapid rate.
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