The real estate market is trying to figure a way to keep the pain from hitting homeowners.
The latest signs are the mortgage rates are rising faster than in recent years, and investors are getting nervous about their investments.
The average price of a home is up just 2.7% in the past year, according to Zillow, a real estate analytics company, according in an article by The Wall Street Journal.
The median price is up 6.9% in five years.
The housing market is starting to come back, at least in terms of buying power, as home prices keep climbing.
The average price for a two-bedroom house in the U.S. has risen by 7.9%, according to Trulia.
The pace of price growth has been particularly strong in the suburbs, according the New York Times.
The metro area’s median price jumped 11% last year, more than doubling from $130,000 in 2015.
The fastest-growing area of the country was in San Francisco, where median home prices increased more than 50%.
That is why investors are nervous.
“You can’t go on forever and expect to keep buying the same properties and not make a profit,” says Stephen McBride, a broker with brokerage Cushman & Nash.
“You have to be able to make a reasonable profit in a reasonable amount of time.
People have been waiting longer for that.”
McBride says investors need to sell as much as they can, as well as refinance or buy back homes in areas that are less attractive.
“People are selling at a higher rate than they were buying a year ago,” he says.
McBride’s advice: Be careful not to make big mistakes.
“When you buy, take some risks,” he recommends.
“And make sure you’re prepared to get paid for the time you spend with the property.”