Interest rates have jumped more than 2% since the start of the year – the biggest quarterly increase in 28 years.
saw a similar trend when looking at that same time period, with the average home price seeing a 17.9% increase and a median selling price of $485,000.seeing a 21.9% increase in home prices and a median selling price of $640,000.
“Those sellers are wanting to expedite their timing, mainly because of the concern of what that may do to them in terms of getting a lower price compared to what their expectations were even a month ago,” said Tori.37.5% increaseTori said the rising interest rates will also work to stabilize the market by pricing out some would-be homebuyers, ultimately eliminating competition and further driving down demand.
“That’s going to lead into us seeing more inventory, more houses, and even more negotiation power,” Tori said. “We’re going to see those contracts staying within the asking price.”that this shift should not be confused with a crash, but, rather, it represents a “swing back toward a more balanced housing market.”
In that same report, the company contends that, while price growth will start to slow, it is unlikely that prices will fall. Zillow also predicts a thriving housing market for months to come due to pent-up demand from homebuyers. According to Zillow’s home value forecast, 14.9% growth is expected through March of 2023.show a similar prediction for the inventory growth, which is expected to continue to expand through March of 2023.©2022 Cox Media Group
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