Housing prices have been on a meteoric rise for the past year, with little change in the past few months. For those looking for housing, city living was usually a more expensive option. Now, it looks as if the tides have turned and the suburbs are now just as pricey as the city, if not more. You may be priced out of the suburbs. Here’s what you need to know.
Suburban Housing Prices Are Rising
Prices for homes in the suburbs rose by over 20 percent in March of 2022. This is a huge increase, and it doesn’t seem to be slowing down. The rise in suburban housing prices can be attributed to a few different factors.
The first factor is that people are moving out of the city in droves. The pandemic has made many people reassess their priorities, and for many, that means leaving the hustle and bustle of the city behind for a more suburban lifestyle.
The second factor is that there is a limited supply of suburban homes on the market. The combination of people moving out of the city and limited supply has caused suburban housing prices to skyrocket.
Interest Rates Are Rising As Well
Not only are suburban housing prices rising, but interest rates are rising as well. This is making it even more difficult for people to purchase a suburban home. Interest rates are now almost 6 percent. This rate has caused many of those looking for a home to decrease the amount they are willing to pay.
Many of those that have found a home and put in a bid have had to withdraw their contract based on the rising interest rates. With suburban homes costing so much, many are now sitting on the market a little longer than a few months ago.
So What Does This Mean For You?
If you’re looking for a suburban home, you may need to adjust your budget. The days of finding a suburban home for a steal are over. You may also need to be prepared to compete with other buyers. The current market is very competitive, so if you find a home you love, don’t hesitate to put in an offer.
If you’re not ready to buy a suburban home just yet, don’t worry. The suburban housing market is predicted to cool off in the next few years. In the meantime, you can always rent. However, be prepared to pay higher rents as well. Landlords are taking advantage of the current market conditions and rising prices.
Stay Up To Date On The Market
No matter what your housing plans are, it’s important to stay up-to-date on the latest market conditions. This way, you can be prepared for whatever the future holds.
What are your thoughts on the suburban housing market? Have you been affected by rising prices? Let us know in the comments below!
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.