Real estate market right now looks very different from what it used to look a decade ago. The economy is battling. A powerful demand is generated from a ready demographic. As a result, a volatile market is generated. Parts of the country where high home prices are persisting is what causing home purchasing to become expensive.Reasons for rising in housing pricesThe housing market is not exempted to the year’s impulses. Housing prices increased last year due to unemployment, growth in wages and fallen inventory. Also, there is a shortage in a number of skilled workers at the construction sites. There are other reasons like land confinements and increase in prices of lumber. Ongoing construction cannot run parallel to the demand that is been created.
Thus, it somehow fails to keep up. Wages have gone high but so have housing market and still, houses are put in the category of non-affordable commodities. Rates on interest and mortgages have increased.Home prices will be pushed further ahead because of low inventory prices. There is a short supply of homes and as the supply isn’t meeting the demand, it is but obvious that prices are not going to come down. This, in particular, is bad news for all those first-time buyers who struggle to collect their down payment. The year 2017 had witnessed the growth of prices in the housing market. It just seemed like rising in prices is never going to stop. This year too it will grow but at a slower rate.Right now it is seller’s market and all those who are trying their luck in selling their houses at good prices will be benefited. It is better to develop a strategy of an advanced search. Prices on a home cannot cross increase in incomes and inflation. Moreover, mortgage rates are very volatile. It is, however, a good thing to notice that supply is increasing but it is unlikely to meet the demand and thereby the whole problem remains unsolved. Competition is becoming more and fiercer.Final verdictIt is almost impossible to determine when the housing market will go down. It may eventually go down but determining how and when is next to impossible. The housing market is run by never stopping demand and hard obliging guidelines. Sales growth may remain steady but despite it, prices in the housing market will keep increasing and this is because of the increase in demand. However, it can be said that growth rate this year will be a little slower relatively. 2018 will witness a rise in home prices and the housing market is unlikely to go down even this year.