The Paradox: Rising Rates and Resilient Home Prices
Despite the prevailing high rates and the financial strain on potential buyers, home prices are not experiencing the anticipated downturn. Why not? The answer lies in the fundamental dynamics of supply and demand within the housing sector.
The housing market currently faces a challenge with low inventories of homes for sale, coupled with a consistent demand for housing. Each day witnesses the formation of new families, individuals seeking to transition from rentals, and relocations. The daily transaction volume in the U.S. real estate market ranges from several thousand to tens of thousands during peak seasons, keeping demand relatively stable.