ReCasa Financial Blog

If you have purchased anything lately, you probably have noticed the increase in cost of items. Not only is there still an increase in the price of wood and other building materials, but now fuel and groceries are rising to astronomical levels and inflation is at a forty year high.

Real estate prices are continuing to rise as well. Mortgage rates continue to climb and currently sit at the highest level since 2009, and we should expect to see more increases over the next year. According to MSN.com, “The consumer price index remains high: 8.3% above year-ago levels.” 

The United States continues to see a shortage of homes for sale.  This shortage is impacting the increase in home sale prices. Houses that are put on the market are not staying on the market for long even with the high list prices and high mortgage rates. The average 30-year fixed mortgage rate went from 3.11% in December 2021 to 5.25% in five months.  Real estate professionals predict that home sale prices will continue to increase through the end of the year.   

Economists are predicting a recession in our future, but not until 2023.  This possible recession could mean a possible decrease in home sale prices.  However, experts believe that this recession will not be the 2008 recession we experienced.  

Read more about the possible recession here - Fannie Mae predicts recession in late 2023 | Fortune



What are your recession predictions?