If you’re considering a move this year, two major housing market factors are likely on your mind: home prices and mortgage rates. You're probably wondering what will happen next and whether it's better to buy now or wait. Here's what experts are saying about both.
What’s Next for Home Prices?
Home prices are projected to continue rising over the next five years. According to the Home Price Expectations Survey, home prices will rise at least through 2028.
While the percent of appreciation varies year-to-year, the survey indicates that prices will increase at a more stable pace. For example, home prices are expected to rise by 3.78% in 2024, 3.36% in 2025, 3.87% in 2026, 4.18% in 2027, and 4.11% in 2028.
What does this mean for your move? If you buy now, your home will likely grow in value, and you should gain equity in the coming years. However, if you wait, the price of a home may be higher later on, which could cost you more in the long run.
Other experts, such as those from Real Wealth, highlight that demographic trends will continue to fuel demand for housing. The largest demographic group in the U.S. is people aged 30 to 39, and their growing need for housing will sustain the upward pressure on home prices.
When Will Mortgage Rates Come Down?
This is the million-dollar question in the industry. There are numerous factors contributing to the volatile mortgage rate environment. Odeta Kushi, Deputy Chief Economist at First American, explains:
Mortgage rates could still decrease later in the year, but economic indicators will continue to play a significant role. According to a CNET article, rates are influenced by various economic data, geopolitical events, and other factors.
When considering interest rates, remember that they vary depending on many factors such as the term of the loan. A 15 year mortgage will be a lower rate or an adjustable rate mortgage is often significantly lower than a 30 year fixed rate mortgage. It is key to speak to a local bank to find out what rates you may qualify and what type of loan will best meet your specific needs.
What does this mean for you? If you are ready and able to afford a home now, it might be a good idea to partner with a trusted real estate advisor to weigh your options. Rates might decrease, but waiting for the perfect moment can be tricky given the many variables involved.
Considering a Home Purchase on Martha’s Vineyard?
For those considering buying a home on Martha’s Vineyard, these trends are particularly relevant. The island's unique market often experiences higher-than-average appreciation rates due to its limited supply and high demand. According to Norada Real Estate, regions with a significant imbalance between supply and demand, like Martha’s Vineyard, can see even steeper price increases.
Additionally, the potential for mortgage rates to decrease later in the year could present a more favorable buying environment. Lower rates could improve affordability and increase the attractiveness of purchasing property on the island.
Bottom Line
If you're considering a home purchase on Martha's Vineyard, connect with The Ohanlon Group, trusted real estate agents who are experts in the Martha’s Vineyard real estate market. They will ensure you have the latest information on home prices and mortgage rate expectations. Together, you can review what the experts are saying to make an informed decision on your move.
By staying informed and working with knowledgeable professionals, you can navigate the housing market with confidence.
