House prices are up more than in 10 decades. That’s a fact, whether you like it or not. A lot of people don’t like the idea of house prices going up. They think that means everyone who buys houses is stupid for paying so much for them. But what is the real reason why house prices are going up?
Too much money and too few houses
The number of homes for sale is down, and the number of people who want to buy homes is up. That’s a recipe for disaster when it comes to house prices.
It’s simple math: there are more houses on the market than buyers. If you’re looking to move into a new place or sell your home and need some cash, this means that there are plenty of available properties—but they’re not selling quickly enough (or at all).
Low interest rates
You might think that low-interest rates are bad for everyone, but in fact, they’re good for homeowners. Low mortgage rates mean that homebuyers can afford to get into the market and purchase a house at current prices.
Low interest rates are also good news for sellers who want to sell their homes. Sellers can receive more money from their home sale than they would have received had there been higher borrowing costs, which means they’ll be able to move on with their lives sooner rather than later—and without having to worry about paying off any debts first! In addition, if you’re thinking about selling your house in the near future due to an upcoming move or other life changes (for example: moving abroad), then taking advantage of these low rates right now could be beneficial because you’ll probably find yourself sitting pretty when compared with what most people would expect after making such an expensive decision as moving abroad.”
Inflation is the increase in the general level of prices for goods and services in an economy over a period of time. Inflation is caused by an increase in the money supply, which results in more expensive goods being sold in stores. For example, if you have to pay $100 for your groceries today and tomorrow your grocery store raises prices to $110 (a 10% increase). This will make it seem like there has been inflation since you paid $100 and then received groceries worth $110 later on!
The pandemic has people making a change
The pandemic has people making changes. People are moving to different areas, buying smaller houses and more land, and generally trying to live their lives without worrying about the future.
As a result of this pandemic, some people have left their homes because they don’t want to deal with the risk of getting sick or dying from flu-related illnesses like pneumonia or dehydration. Others have moved closer together as families try to get by on less income due to job losses or lost wages during an economic downturn (which has been happening since 2009). In short: We’ve all been affected by this thing called “the flu.”
Home prices are also up for first-time buyers
First-time buyers are also more likely to be younger and single than those who have owned their homes for longer. And what’s more, the average age of first-time buyers has been increasing over time (it’s now at an all-time high), which means that there’s a greater chance that these people will be able to take advantage of low-interest rates and make their dream homes affordable.
According to Zillow data from January 2019, 62 percent of all homeowners in America were 55 or older when they purchased their first property; meanwhile, only 35 percent were under 35 years old. The median age was 39—the youngest since 1990 and an increase from previous decades’ averages of around 30 years old at purchase time (which isn’t exactly what you want if you’re planning on saving enough money).
The increase in COVID-19-related home buying and selling
- The increase in COVID-19-related home buying and selling
- People are buying houses to get away from the pandemic, but there is also a large increase in people who want to move back into their homes.
- Some people have been forced out of their homes because they can no longer live in them due to health concerns or other reasons. They are moving into homes that were purchased by others hoping that these new owners will take good care of them as well as their belongings!
As you can see, the increase in home prices is the result of many factors. The most important one is the increased demand for housing as a result of population growth, inflation rates, and interest rates. This will continue to happen in the future because we have an aging population on top of that problem.
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