Prices and Appraisals, 2021
Will prices come down?
The short answer is probably not. Real Estate Economist, Steven Thomas, predicts that prices will rise 8% more and interest rates will rise to 3.7% (it's around 2.95% now) by the end of the year. For example, a house that is worth $875K TODAY at 3% Interest rates will cost a buyer $2,950 per month assuming a 20% down payment. However, if you wait until the end of the year to buy that exact same house, it will end up costing you $550 more per month as it will be starting at $945K purchase price and the interest rate will be 3.7%, making the monthly payments $3500.
If you watch and read this facebook post, his message is do not wait, it will continue to get more expensive both on the cost of the house and increase in rates with no relief in the foreseeable future.
And here are a few other expert opinions along the same vein.
Appraisal Issues
I wrote a great blog about this exact topic! As a buyer and seller, it's important to be prepared for this to happen!
