Springfield’s Housing Market with Rising Rates

rising interest rates


This housing market has been a wild ride in 2022, from soaring home prices, low inventory, and now rising interest rates.  The changes have many people wondering what’s going to happen to the local Springfield housing market.

Homebuyers are feeling the 1-2 punch from both rising home prices and mortgage rates.  Home prices have been hitting all-time highs with low inventory and quick sales.  The higher mortgage rates will start to cause homes to be on the market longer.  It should also start to return home price increases to more normal levels.

Federal Reserve Rate Hike

The Federal Reserve made history last week by hiking rates by three-quarters of a percentage point for the second straight month.  This is the most aggressive tightening in more than a generation hoping to curb the highest inflation on over 40 years.

Dr. Jessica Lautz with the National Association of Realtors said, “However, fewer buyers will be able to afford a home because of rising interest rates and increasing home prices.  While unaffordable housing isn’t a good thing, it does mean that buyers still in the market may have more time to find the perfect home.”

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What are Springfield’s Housing Market Predictions for 2022

Springfield's housing market

Many are wondering, what are Springfield’s housing market predictions for 2022? As many have reported Springfield’s housing market has been setting records on multiple fronts throughout 2021.    Springfield record high housing prices, record low interest rates, low available home listings, what does it all mean?

2021 Housing Recap

2021 has been a wild year in real estate for Springfield and the surrounding area.  Like the rest of the country we experienced a shortage of homes for sale, supply chain issues, and decade’s high inflation resulting in home values increasing to record highs in 2021.  The average sales price for a home in Springfield according to the Greater Springfield Board of Realtors (GSBOR) in 2020 was $192,971 the sales price for 2021 was $221,245.  This is over a 14% increase for the year with days on market dropping from 63 days to 21 days.   That is a 49% increase since average sales price in 2016.

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