Sellers Have an Opportunity with Today's Home Prices

Lisa Scott

Lisa Scott

As mortgage rates started to rise this year, many homeowners began to wonder if the value of their homes would fall. The experts have some good news to share. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. The latest data on home prices seems to confirm that trend. We are continuing to see a steady increase in home prices, even though rates have gone up a bit. 

According to data from CoreLogic, this is largely due to an ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is still high. As mortgage rates started to rise this year, many homebuyers rushed to make their purchases before those rates could climb higher. The increased competition drove home prices up even more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains that home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge.

And experts say prices are forecasted to continue appreciating, just at a more moderate pace moving forward. A recent article from Fortune says, “...the swift move-up in mortgage rates doesn't mean home prices are about to crash. In fact, every major real estate firm with a publicly released forecast model still predicts home prices will climb further this year.

What This Means for You
If you are considering selling your house, you should know that you have a great opportunity to capitalize on today's home price appreciation. As prices rise, so does the value of your home, which gives your equity a big boost. Home prices may not increase as rapidly as they were, but they should continue to rise.

Bottom Line
History shows rising mortgage rates have not had a negative impact on home prices. Now is still a great time to sell your house thanks to ongoing price appreciation. When you're ready to find out how much equity you have in your current home and what's happening with home prices in Lake Forest, let’s connect.