Existing Home Sales Reach ALL-TIME HIGH, Why you should care helps you understand inflation, rents and affordability of homes. Who is winning and who isn’t on The Main Line?
Existing home sales are at their highest point in years, mortgage rates are low, and there does note enough homes to meet the demand. WHAT IS HAPPENING! Hi, I’m Kimmy Rolph and I represent sellers on The Main Line PA and we are in a historic housing market. Thing about it, for the first time in decades, we have been spending significant time at home, and our homes are getting upgrades. People are scrambling for homes and prices are going through the roof for sellers.
The most notable stats from the housing market in 2021 were that home price appreciation went up year-over-year (YOY) by 18.5% in the third quarter, the highest level in the Federal Housing Finance Agency (FHFA) House Price Index history. Inflation has shot up at the fastest pace since 1982 and at the same time, the number of houses for sale has dropped, creating greater pressure on home prices. The Housing supply plunged to its lowest level in history, with just 1.38 million homes on the market in June, down 23% annually and buyers scooped up homes faster than ever before, shrinking the number of days homes spent on the market to a record-low of just 15 days. Mortgage rates are holding steady around the 3.1% mark for a 30-year, fixed-rate mortgage– which is incredibly low.
What doe this mean for my sellers on The Main Line in 2022? Your homes, in short, are going to appreciate, however, you will also need to purchase another home, which could make you hesitant. Do not be. Nicole Bachaud, an economist at Zillow explained “Much of what drove high price growth this year will follow us into next year, when We will expect to see prices rising at extremely high levels for the first few months of 2022 before beginning to taper off towards more normal levels.”
Since housing demand will stay strong in 2022 unless inflation stalls buyer appetite, Rents will rise rising and so will the mortgage rate. This all spells a seller market and for sellers to buy again, instead of rent. So it comes down to basic questions for sellers who are tempted by current conditions,
Are their available homes for sellers on The Main Line? Yes. Will my home appreciate further? Maybe. Has my home appreciated, OH YES! Homes appreciated by nearly 20% so it truly is the time to sell. If you are considering it, see some of my other resources below, client reviews, and reach out. Let’s take this next step together. Remember, Kimmy Rolph sells The Main Line and local areas.