How Long Will the Market Continue to Rise?

By maryellen June 9, 2021

How Long Will the Market Continue to Rise?

As everyone watches in awe, prices hit new highs every month. It is safe to say that double digit price increases have been seen all over the U.S. with no end in sight.

In February alone prices went up over 2%, which is the highest single month increase since February of 2006!

Such high appreciation comes at the same time as record lows for mortgages and record lows for the amount of available inventory. With such huge cost increases, it has become extremely tough for first time homebuyers and other young buyers that may not have help from family money to actually be able to join the buying market.

The price ranges that were the most popular 2 years ago were in the range of $550,000 to $750,000 depending on the town you were interested in. Today, that number must begin closer to $750,000 in order to purchase a “modest” home in the area.

With regard to tight inventory, many Baby Boomers are deciding to stay put unless they are ready to completely leave the state. Other home owners have growing families with roots and do not have any other place that they would rather be so they are also staying put. Although the market is expected to continue going strong at least through 2022, prices will rise at a MUCH slower rate. This will be due in part to the shrinking buyer pool resulting from the high cost of home ownership, as well as a good number of sellers that will stay put hoping that they will be able to get even more money by waiting!

Time will tell. What we have seen in the market in the past 12-13 months is nothing like we have seen before so we will be living through history together.