Yesterday, September 22, 2022, The Federal Reserve announced three-quarters of a percent rate hike to tame inflation. As of today, we’ve already seen the S&P 500 fall, and we know that mortgage rates will continue to rise due to the hike. Many are concerned by The Fed’s Chair Jerome Powell statement that “…the U.S. housing market will probably go through a “correction” after a period of “red hot” price increases that have put home ownership out of reach for many Americans.”
Though this seems like a scary statement, professionals believe that this isn’t like 2008. Powell added, “For the longer term what we need is supply and demand to get better aligned so housing prices go up at a reasonable level, at a reasonable pace and people can afford houses again. We probably in the housing market have to go through a correction to get back to that place.”
In the New Orleans Metro, we’ve already seen the Average Sales Price of Single Family Detached Homes fall 11.17% since June.
We’ll keep you updated on how the market reacts to this hike further. One thing is certain, rents will definitely be on the rise as more people decide to pause their home-buying journey.
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
Questions? Reach out to one of our advisors for a chat!
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