Home Buyers Will Pay More Due To Rising Mortgage Rates, So Does That Mean Bargain Home Prices For Our Area? Michael Friedman Realtor eXp Realty Boca Raton Florida

November 15, 2022

RE Bargains In Boca Area?

What Could I Do For You?

Home buyers in our area might be surprised by the title of a recent Miami Herald article entitled, “Declining U.S. home sales don’t force falling prices as supply remains tight,” by Tom Hudson. 

The article points out that home buyers will pay 56% more for a home in the past year due to the rise in mortgage rates. 

Google searches for “housing collapse” have picked up dramatically and rivals the “Great Recession” period for these types of phrases. 

Many would expect with mortgage rates being at 20-year highs, home prices would be falling in our area. 

However, as the article points out, “the number of existing homes sold in September fell by 24% compared to a year earlier, while the median price increased by more than 8%.”

So what are some of the differences between the current local real estate market and that of the “Great Recession”?

The article quotes Lawrence Yun, National Association of Realtors’ chief economist, “the current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.”

Many real estate experts are predicting a continued low level of inventory to be a “stabilizing force” for home prices despite the rise in borrowing costs. 

I write about the local real estate market in order to keep my customers apprised of what is happening to be best situated for their individual goals. 

What do you think will happen in our local real estate market?


Michael Friedman
Broker-Associate, Realtor
eXp Realty

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