Since no one has yet been able to discover a crystal ball that can consistently identify future and real estate-related market trends and behaviors, it makes sense for real estate professionals, as well as qualified, prospective buyers and sellers/homeowners, to better understand some of the factors, that affect prices and home prices! While prices are what you list your home for, in the market, prices are what it actually sells for – for! As we are currently witnessing one of the fastest growing (price-wise) markets in recent memory, many are asking what the future holds, etc.! As a licensed New York State Realtor for over 15 years, I have consistently cautioned people not to market time, but rather to proceed in an informed, realistic manner based on your specific need and priority and personal situation. With this in mind, this article will attempt to briefly identify, evaluate, consider and discuss house prices as they relate to the current market, short, medium and longer term.


1. Present/Immediate: In many areas we have seen home prices increase by 20% or more in the last 6 to 12 months. I am amazed, homes in my neighborhood, I feel are nice but not exceptional, are selling for $1.2 million and up! While those considering selling should take advantage of this rather than trends, changes, potential buyers need to find out if their purchase is intended for a shorter or longer term! Factors creating today's conditions include: near-historically low mortgage interest rates; post-pandemic perceptions and priorities; emotion; and wanting to move etc. How long will this continue? My guess would be that it would slow down first and then level off and maybe the single biggest cause could be mortgage rates! Down payment affordability, closing costs, etc. become more of a constraint as prices rise!


2. Short term: How short term is defined is significant in determining what could be! If we consider it as, from, about 6 months (from now), to about 3 years, from today, if the forecasts of economists are somewhat - accurate, chances are, prices will not rise, significantly, etc.


3. Intermediate - Term: Defining the medium term, from about 3 years to maybe 10 or so years, from now on it is more difficult to predict! Will we witness another example of real estate cycles, or will aggressive pricing, even if it doesn't become new these days, be the norm?


4, Longer - Term: For those who plan to hold onto their home and live there for 10 years or more, we will likely see prices that match the rate of inflation, market conditions and specific geographic area! In other words, the longer-term trend is likely to revert to what we consider to be historical, normal trends and tendencies