Will Home Prices Continue to Appreciate?
Home prices continue to appreciate, and many consumers are worried this trend is unsustainable. However, the majority of financial experts believe the housing market is strong and prices will continue to appreciate due to sustainable, strong demand. So, yes, it is likely home prices will continue to rise.
Price Appreciation Is Due to Supply & Demand
Unlike the 2008 housing bubble, today’s home prices are driven by the simple concept of supply and demand. Current year-over-year price appreciation can be explained by a strong demand for housing and a low inventory of homes available for sale.
Experts agree that the strong demand and low supply, along with tight mortgage lending standards, bodes well for the current market and home prices. They believe this will be an “unusually long and strong housing expansion”. Household buying intentions are also the highest they have been in 20 years.
So, in short, if you’re looking to buy a home, but you’re waiting for the housing market to go back down, you might want to reconsider. Strong demand for homeownership looks like it will continue to drive the real estate market for the foreseeable future.
For more information on buying or selling a home in Des Moines, contact the Knickerbocker Real Estate Team today. We have the experience and expertise necessary to navigate this robust housing market.