HOUSTON — If you have been priced out of the red-hot housing market, then there may be good news on the horizon.
Experts say the market may be starting to cool.
Applications falling
If you have been in the market for a home recently, then you know — it’s crazy out there. Houses are selling quickly, often for thousands over the asking price. It has been driven by a big increase in demand and record-low mortgage rates. But Realtor.com reports there are signs that things are starting to change. New numbers show fewer buyers are applying for mortgages, and price growth is slowing down.
Interest rates + heading back to the office
The chief economist for Moody Analytics has some theories about what is going on: First, mortgage rates aren’t going to stay this low forever. The fed has already signaled it will raise interest rates. And as COVID-19 cases fall, more and more people are returning to the office, lessening demand for that new home office.
No crash expected, prices still high
The good news is many experts don’t believe this is a bubble, so we are unlikely to see a housing crash like 2008. But homes are overvalued, with some economists estimating prices 10% to 15% above the actual value of the home. This doesn’t mean prices will plummet, it just means you may have less competition when you make an offer on a home.