Key Points:

• Current Trends:
  • As of April 2022, home price growth accelerated, rising 19.8%, the highest since August 2021.
  • Despite rising interest rates, home prices continued to rise during the winter months of January and February 2022.
• Mixed Opinions:
  • News outlets like CNBC suggested a slowdown might be coming, but just months before, they reported home price growth decelerating, which didn't happen.
• The Relocation Trend:
  • Many buyers are looking to move to more affordable metro areas due to skyrocketing home prices and rising mortgage rates.
  • This trend mainly involves renters, not homeowners, who are now looking to purchase in more affordable locations.
• Limited Home Inventory:
  • Fewer people are willing to sell their homes due to low-interest rates on existing mortgages, which makes it harder to find a new home.
  • Selling a home with a 2-3% mortgage rate and moving to a new house with a 6-7% mortgage rate is financially unappealing.
  • Homeowners are essentially holding onto a "lottery ticket" in the form of low mortgage rates.
• Impact of Higher Interest Rates:
  • Higher interest rates are pushing homebuyers into a position where they may have to pay more for a home or be locked out due to limited inventory.
  • Historically, 5-6% mortgage rates were considered low, so current rates are still relatively manageable compared to past decades.
• Renting vs. Buying:
  • Rent prices are rising sharply, leading many renters to reconsider buying homes to avoid paying higher rents in the future.
  • Buying now could save money in the long run by locking in a mortgage payment that may be more stable than rising rent prices.
• Hidden Costs of Waiting:
  • Delaying a purchase could lead to higher prices, increased interest rates, and deferred maintenance issues in homes.
  • Deferred maintenance can lead to costly repairs that a new buyer would need to address.
• Future Considerations:
  • While home prices may continue to rise, the decision to buy depends on individual circumstances.
  • Renting might become more expensive as home prices rise and renters face higher lease renewals.
• Conclusion:
  • The housing market is unpredictable, and it's important to focus on facts rather than opinions from news outlets.
  • If you're thinking of buying, consider the current market trends and your personal situation. Home prices may keep rising, and waiting could mean higher prices and interest rates in the future.
• Listener Engagement:
  • We’d love to hear your thoughts on the housing market! Share your experiences or opinions on how these factors are affecting you.