The historically low-interest rates are becoming a thing of the past. Mortgage rates are rising and have been since the beginning of this year. Homeowners are beginning to worry if the value of their homes or condos will also fall. In the past, home values have continued to appreciate even with a mortgage rate rise by a percentage point or more.
The latest data from CoreLogic confirms that prices are still holding strong. Home price appreciation has been strong and rising since November. November saw an 18.1% price appreciation year over year, December an 18.5%, January saw a 19.1%, February 20% and March a 20.9% year over year increase.
The re-accelerating price appreciation is due to the ongoing low supply and high demand. Buyers want to beat the rising interest rates, so they are flooding the market trying to buy before the huge spike. The flooding of home buyers has increased competition even more which is driving home prices up.
“Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge”, says Selma Hepp, Deputy Chief Economist at CoreLogic.
Now is still a great time to sell. If you are in the market, work with a Realtor in your area who can get you the best price and terms. Thanks to the ongoing price appreciation, you are sure to get a high price for your home.
