Some of the clients who have worked with me in the past year have said, “My friend says that the interest rate will go up and the price of the house will go down. So I’m going to wait and buy it.”
They will put off buying a house by saying things like, “My husband says we shouldn’t buy a house now because the price is going down.”
So how did house prices change?
After the house price went up like crazy due to Corona, the interest rate went up to catch inflation. And there are many people who thought that house prices would fall due to this rising interest rate. However, house prices are still rising.
When comparing the house price of last November to the house price of 2021, it has risen by 9.2%. Yes, it's up close to 10%. And this is only the rate of increase in house prices in November compared to November, it has risen more dramatically if you look at the average for the year. Because, as you can see from the graph, November's 9.2% is the lowest increase over the past year.
The rate of increase in house prices every year before Corona was 3 to 4%. Even if you calculate it, including when the subprime mortgage condition occurred, the average of the 30 years before 2019 right before the corona rose by 3 to 4%.
Unfortunately, this is bad news for those who hesitated to buy a house in the expectation that the price of the house will fall due to the rise in interest rates last year. It has no choice but to come with a burden. If you look at a house with the same budget as last year, you have no choice but to buy a house in a worse condition.
This article is by no means pressuring you to buy a house quickly.
What I would like to say is, do not be too shaken by the opinions of acquaintances who predict the house price with feelings, and I ask you to analyze and decide for yourself. Buying a home can be the biggest investment of your life. More detailed data can be easily obtained from experts around. Real estate experts will help you make smarter decisions with quantified, objective information. If you don't have that kind of information, you shouldn't be called an expert.
Please contact us if you have any questions. I will give you all the information you need.