Home prices continue to fall as the market for buyers continues to slow down. Estate agencies such as the Greycoat one are reducing their prices in a bid to move the units they have on hand. To learn more about the continuing decrease in home prices and how estate agencies can handle the new market conditions, read on.

Why Are Home Prices Falling?

According to Greycoat Real Estate, high interest rates are the primary factor driving the reduction in home prices. High interest rates make mortgages less obtainable for home buyers, as they may have difficulty affording them.

In addition to high interest rates, home prices are also falling because of economic uncertainty as Greycoat explains. The rising cost of living and possibility of future interest rate increases are dissuading buyers from spending time and money trying to purchase a home.

How Can Estate Agencies Handle Lower Home Prices?

While the home buying market is sluggish, the rental market remains active, Greycoat adds. With mortgage rates high, some buyers are deciding to rent a home instead of buying one. Demand for home rentals is increasing along with their prices, and an estate agency who is willing to rent their homes instead of selling them can take advantage of the active rental market.

Ultimately, economic uncertainty and the threat of another interest rate rise is slowing down the home buying market while making the rental market more lucrative. Estate agencies willing to switch focus can take advantage of this market trend by choosing to operate more on the side of the rental market. Until interest rates fall and buyers become more willing to purchase homes, Greycoat finally adds, the market for home sales will likely remain sluggish.