Worcester residents might be interested to learn what national real estate transaction experts are saying about the current state of the national housing market. With interest rates climbing and demand booming, some may wonder if the market is headed for another collapse.
Experts believe that the strengthening housing market will continue to grow for a number of reasons. First, they note that consumers’ fears that interest rates will keep on rising is one reason people will keep buying homes. Since many buyers fear that rates may eventually price them out of the market, they are more likely to buy sooner to avoid higher rates later on.
A second reason experts think that the market will endure through rising interest rates is that home owners are regaining equity in their real estate and might be more likely to offer those homes for sale if they are able to secure greater returns. With more homes offered for sale it is likely that there will be more transfers of property to interested buyers.
Finally, experts think that housing growth will persevere because of the relative price of homes. In many parts of the country homes are still less expensive than they were at their peaks and even though interest rates are climbing, those rates are still lower than they were in prior decades.
The subjective factors that draw a buyer to a particular home are personal to that purchaser, just as the decision to put a house on the market may be driven by intrinsic factors important to the seller. Despite the great deal of personal decision-making involved in buying or selling a home, experts believe that the national market should continue to thrive through currently rising interest rates.
Source: Worcester Telegram, “Experts: US housing rebound likely to handle spike in rates,” Alex Veiga, Oct. 4, 2013