We’ve been seeing interest rates increase pretty steadily the last few months. This tends to depress demand and home prices. But we’re still seeing price increases. July’s numbers again show a gain of 12% over the same time a year ago. From Diana Olick at CNBC,
‘Despite rising interest rates, home prices continue to surge higher. The latest read shows values, including distressed properties, up 12.4 percent in July, year over year, according to a monthly CoreLogic report. That’s higher than both May and June’s annual increases.
This is the 17th consecutive month of annual gains for home values nationally. Prices were up 1.8 percent month over month, according to the report.’
So what does the future hold? Demand is still steady whil inventory is still low. Here at homesinatlanta we expect to see more price increases (but modest ones) and those increases will continue to slow both from higher rates and due to seasonality of the home buying season.