Anyone who works in marketing or sales knows that having a demand for your product or services is essential for profitability. They also know that you can raise your prices if you have a lot of demand and a limited supply of what people want.
Supply and Demand
This scenario has been happening in the housing market in the last few years. Demand for homes is strong, and the number of homes available to purchase is not keeping up with demand. Several factors are contributing to the demand for housing. Two significant factors are the large number of millennials looking to buy homes and the historically low-interest rates for mortgages.
In the coming months, it is improbable that the number of millennials will shrink significantly, nor will the home available for sale likely increase significantly. What will probably change in 2022 is the interest rate for mortgages. The Federal Reserve is considering raising the interest rate in March of 2022.
Right now, it may be the once-in-a-lifetime opportunity you have been looking for to sell your home. Demand for homes is stronger than ever, with limited supply and low mortgage interest rates. Increasing the mortgage interest rates will certainly decrease the number of people who can afford a mortgage, probably cooling down the housing market.
If you have been thinking about selling your home, now is the perfect time to start talking to a real estate professional about listing your home.