“Why are house prices so high?” was the question posed in last month’s KSL.com headline; “Blame remote work, not ‘speculative bubble,’ Fed study says.” That appraisal bolstered the contention that rises in Forsyth County home prices are due to fundamental factors rather than rampant speculation. The Federal Reserve Bank of San Francisco made the case in their research finding, “Remote Work and Housing Demand.”
The Fed paper’s authors were tasked with the job of tracing the origins of the recent national surge in housing prices. Their finding should be comforting for local homeowners who might worry over the national deceleration in housing price increases—especially given the decline in the volume of sales.
The key to the price surge lay in a cultural change triggered by the pandemic—a reshaping of the way Americans work. Statistical analysis proves that “The shift to remote work accounts for more than half of overall price growth over the pandemic.” Between November 2019 and November 2021, house prices grew by 24%.
As for what Fed Chairman Jerome Powell sees for what lies ahead, he makes some positive points about “the deceleration in housing prices we’re seeing.” In addition to the fact that U.S. prices in most areas remain higher than they were a year ago, he points to one basic factor that’s hard to naysay: the continuing imbalance between supply and demand. He sees the deceleration in housing prices “should help bring…prices more closely in line with rents and other housing fundamentals.”
If that link holds up, it could be another argument for stability in the market. According to creditkarma.com, in 2022, “the average rent increase in the U.S. was 14%.” That figure put it in lockstep with new home sales price gains—last Wednesday, Reuters reported that September’s median new house prices showed an annual gain of 13.9%.
Forsyth County home prices are dependent on a raft of factors. If you are considering how your own property would fare in today’s market, the best way to proceed is to get an up-to-the-moment report on the latest comparable sales. Give me a call: I’ll be happy to provide just that!
Please feel free to call or text me at 404 710 0204 (or drop me an email) if I can provide you with more information about this article, or if I can assist you with buying or selling Forsyth County real estate.
This Cumming GA Real Estate blog is hosted by Gayle Barton of BERKSHIRE HATHAWAY HomeServices Georgia Properties.
I specialize in Real Estate sales in the following Forsyth County and North Fulton County cities: Cumming, Suwanee, Alpharetta, Milton and Johns Creek. Other north metro-Atlanta suburbs are serviced by request, so please call.
Gayle Barton Forsyth County Real Estate | Cumming GA Real Estate | Mountain Crest Homes For Sale
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