Real Estate Trends: Home Values Rise & Increase In Number of Buyers
The trend of rising home values continues across the country. At the same time, the number of buyers looking for a home in most markets has continued to rise as well. What are the factors driving these real estate trends and how long will they continue?
Rising Home Values
Across the country, home values have been steadily rising for the last several years as the housing market recovers from the recession. In many markets, price increases are driven by a very low inventory of homes available for sale. With more potential buyers than homes available, the market has shifted to a seller’s market. Additionally, rising rental rates in many markets allow more room for home values to rise in competition with other housing options.
Specifically in the Myrtle Beach area, the steady stream of retirees relocating to the area has continued to drive up home values throughout the Grand Strand. Additionally, as more land lots are bought up in new residential communities, demand increases for remaining open lots and newly-built homes. With established home owners staying put, the increased demand from incoming residents will continue the trend of rising home values along the South Carolina coast.
Increased Number of Buyers
Despite rising home values, the number of buyers looking to purchase a home continues to increase. A few different factors account for the increase of homebuyers, one of which is the rise in mortgage interest rates. After several years of record low interest rates, buyers see the uptick in mortgage interest rates as a sign to get into a home before the rates rise to a level that puts homeownership out of reach. With rising interest rates comes higher monthly mortgage payments, something that price-sensitive buyers are keenly aware of. For some buyers, the current rates may be the last affordable chance for homeownership for the foreseeable future as forecasts indicate rates will continue to climb.
Another factor increasing the number of buyers searching for a home is the rise in rental rates. In most areas of the country, the cost of rental housing has increased as the general housing market has rebounded. As renters watch their yearly increases get steeper, they look for options to purchase that will be the same or lower than the monthly cost of renting and will help them shift out of the ever-rising rental market before increasing home values and climbing interest rates put such a shift out of reach.
The two big real estate trends are rising home values and increased number of buyers. Both trends are expected to continue for the rest of 2017 and well into 2018, at minimum. It’s a great time to consider selling your home with higher home values and lots of buyers providing the opportunity to get the most out of your home sale. If you are looking to buy a home in Myrtle Beach, contact Century 21 Broadhurst today.