How do rising interest rates affect home prices?
The rise of interest rates hasn't really affected the housing market prices. At least not yet anyway. We do anticipate some price deductions on homes in Colorado Springs, but overall the average home price is still trending upward significantly month over month according to PPAR statistics.
Do higher interest rates mean lower house prices?
There's not exactly enough data to reflect this theory yet. Though we have had plenty of price drops to suggest it, higher rates mean higher monthly payments, so naturally homes will either sit on the market longer, or be reduced in price. There have been 178 price decrease in Colorado Springs in the last seven days. Competition for homes may be loosening up, which is exactly what the feds wanted to do to manage inflation. In fact, this is the most in over 20 years they've raised it.
Should you buy a house in 2022?
We all know that homes naturally increase in value over time-as long as you purchase the right house. If you're finding yourself paying the same amount of money in rent as you would if you had a monthly mortgage, you're ready to invest, you have a steady income, you might consider still buying a house in 2022. Want to have a discussion? Feel free to book a call below.
Happy House Hunting!
IRIS BURTON | REALTOR®
PROSPERITY GROUP BY EXP REALTY
3361 NORTH ACADEMY BLVD
COLORADO SPRINGS, CO 80917