The housing market has traditionally been more cyclical, with neutral sellers, buyers, and markets appearing to have the upper hand at times.
However, in the last year or so, we’ve seen prices rise at or near record levels/rates (or so).
Some speculate on whether or not this will continue, and if so, for how long, while others believe it will become the new normal.
Because there are several factors at play, this article considers, examines, reviews, and briefly discusses six of the most important ones,
as well as their significance and potential consequences and implications.

  •  Mortgage Rates –

We’ve never seen such a long period of record-low mortgage rates, at least not recently! Even a small rate hike has lowered rates to some extent,
so what happens if the Federal Reserve Bank raises borrowing costs, as many expect to happen by the end of next year?
Because a 1% increase in monthly costs increases monthly costs by more than $ 60 per $100,000 per month, the implications and potential ramifications are clear!

  •  Supply and demand.

The law of supply and demand applies to housing and real estate activities, as it does to most economic affairs!
When supply exceeds demand, prices fall or remain constant; when the reverse occurs, house prices rise!

  •  Inventory:

The second principle is created by homeowners who are ready and willing to put their property on the market or not!
This establishes the so-called inventory level, which kicks off the supply and demand cycle!

  • Buyer Interest/Motivation:

It’s critical to distinguish between those who enjoy looking at real estate and those who are truly qualified!
How long does a significant amount of motivated buyer interest last, and how frequently do they determine perceived values, and so on?

  • Economic power:

Few have been able to accurately predict when inflation, recessions, depressions, and stability/stagnation will occur.
How long an economy remains strong and/or, as it is supposed to, how willing people are to buy houses has an impact on buying conditions and willingness to buy houses!

  • Attitudes:

When it comes to the behaviour of property buyers and sellers, perceptions are frequently more important than reality!
Some people’s actions and behaviours are often dictated by their perceptions of future opportunities!
Will house prices continue to rise at this rate, or is this the new normal? Is this just a blip on the radar, or will market conditions shift?