I’m asking as a seller. What is more likely: a higher or lower result?
In: 4
The housing market, like any other market, is based on supply and demand. If there is more demand than supply, the price goes up. If there’s more supply than demand, prices go down.
Even small changes in interest rates can have major effects on the cost to buy a home. For example – interest rates are now over 5%. A 4.25% loan will cost ~600 less per month and over 200k less over the course of the loan than a 5.25% loan.
This means fewer people will be buying houses than they otherwise might, meaning the demand will be weaker than it otherwise might be.
Now – how does this translate to prices? It’s complicated. There is always housing demand, and the supply does not increase that rapidly. The best guess is that there will be moderate price increases, as opposed to the ridiculous ones we’ve seen over the last few years, which were driven by insane demand as well as record low rates
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