3 Factors That Are Helping House Values Increase

It’s December and although the real estate market has slowed down and it’s nothing compared to what we saw in the spring of this year, the real estate market is still thriving by being very much a seller’s market. Sellers may not be getting 20 offers on their home but they are certainly still seeing multiple offers making this holiday season a great time to sell and not have to wait until next spring.

Here are 3 factors that are helping house values to continue increase:

1. Low mortgage loan rates – Back in 2018, a mortgage rate of 4.8% to 5% was considered a good rate. But rates have fallen to historically low rates making it very attractive for buyers to buy now. The average rate for a 30-year fixed mortgage loan hovered below 3% for much of this year and according to Freddie Mac it sat at 3.09% during the first week of November.

Low mortgage rates and the demand among buyers, is just one reason why home prices will likely keep increasing into the coming year of 2022.

2. Inventory shortage – Here in Austin we have been experiencing a low inventory for quite some time. Lack of new construction adds to this dilemma. New home construction started to rebound earlier in 2021. But supply-chain snags and other issues have put a damper on that trend.

3. The WFH trend – This topic needs no introduction. The work-from-home revolution has truly spiked up the housing market in many ways. People are wanting to either own a home to have an office space or they are moving into a bigger home to accommodate the extra room needed. Also, now remote employees have more freedom in choosing where to live because they are not tied to a location near an office. This is why we are seeing more and more folks moving from areas with very high cost of living migrating to cities like Austin and its surrounding areas where there are more favorable housing markets.