Kurz-, Mittel- und längerfristige Auswirkungen auf den Verkauf von Eigenheimen, wenn die Preise steigen!

For many reasons, some economic while others are related to the pandemic – related to so-called exhaustion etc. – house prices have risen to or near record amounts in most areas! Due to the long period of artificially low interest rates, mortgage rates have fallen to historic lows! Because most home buyers need financing to be able to afford a purchase, prices usually rise when a low interest rate means cheap money and the opportunity to buy more home – for – the – money Afford! It allows qualified buyers to qualify for more money/loans, since the ratio of monthly mortgage to total income is artificially reduced! How long will this trend last, will it become the new normal, will previous trends/cycles return and how will it affect pricing in the immediate, medium term and longer term are all factors to consider! With that in mind, this article will attempt to briefly consider, examine, review and discuss, consider and understand a few possibilities.

1. Short-Term: Ever since the Federal Reserve announced that it intends to raise interest rates three times in 2022 (prior to the potential fallout and fallout of the Omicron variant, of course), many have felt pressured to act quickly to get away from the Take advantage of today’s low interest rates before they go up! Three hikes are likely to result in at least a 0.75% increase in interest rates, which will translate into hundreds of additional dollars a month on most mortgages. Some things to consider and keep in mind is that this rate of increasing home prices is unlikely to continue, especially on such a large scale! How long one expects to keep a particular house is one thing to think carefully and wisely before proceeding!

2. Interim: Although many believe they know the exact timing of a forecast rate hike, it is uncertain! The Fed has a history of changing strategies and approaches and/or changing what the medium term may bring, including potential inflationary pressures, how long economic conditions and unknown factors related to the pandemic, etc. will largely determine what this phase may bring ! In addition, the attitude and perception of buyers and their confidence etc. greatly affects this real estate market!

3. Longer Term: In the longer term, will things revert to what we have seen so often in the past, namely alternating cycles between sellers, buyers and neutral markets? Possibilities include: a continued major escalation; one more degree

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