The price for an entry-level home continues to go up and is helping drive today’s strong market conditions.
CoreLogic said home prices nationally have increased by 5.5% in July, the fastest year-to-year growth in two years.
The blend of high demand and low-interest rates is driving home appreciation levels to new heights – and giving homeowners a reason to ponder the possibilities.
Homes on the lower end of the price spectrum are getting extra attention. Prices for these entry-level homes are increasing at a faster rate than more expensive homes.
This segment of the market is crowded by first-time home buyers and investors.
It’s unclear when prices may begin to taper off, but some models point to a slowdown next year.
Price increases within the market were not promised this year. At the start of the pandemic, the real estate market sputtered before picking up some steam and holding steady.
Fueled by eager millennial buyers and historically low interest rates, the recovery is creating new opportunities for current homeowners thinking about upgrading.
This places homeowners in a unique position. Their home’s equity is on the rise and so are home prices and demand. As a seller, your listing will generate a lot of interest, putting you in the driver’s seat once you review offers.
Purchasing an upgraded home or moving into a new neighborhood that better meets your family’s needs is more attainable than ever before.
Not only are prices on the rise, but interest rates continue to drop. As a result, homeowners have more equity to work with and can also pay less when borrowing money for a new loan.
