ACTING WITH THE FUTURE IN MIND
The recipe that makes home prices what they are in the Knoxville area hasn’t changed over the past few months. In short, the demand for homes still far outweighs the supply and continues to slowly push prices upward. In fact, the average sales price for a home is up almost 13% compared to this time last year.
Mortgage rates haven’t changed much move the past 30 days. The good news is that expectations from many economists and mortgage experts are that rates will begin dropping this year and could be in the 5% range by next year.
The outlook on the US economy continues to improve as well. The risk of a substantial real estate market crash coming anytime soon is minimal at this point. In fact, many economists don’t foresee any recession in the near future. And if a recession does transpire, it will be mild and not nearly as bad as the one that hit the United States in 2007.
Our unsolicited advice? Don’t try and time the market… If you can afford to buy the house you want, then strongly consider buying it sooner than later. With home prices creeping up, it may be wise to lock in at the current sales prices. Once mortgage rates begin sliding back down, you can refinance your mortgage to take advantage of the lower rate and reduce your monthly payment.
On the flip side, it’s still a very favorable time to sell your home right now. We’ve seen many of our clients drastically improve their financial situations using the money they received from the sale of their homes.
Got questions? Contact HMG