There’s a phenomenon commonly referred to as the “pull-forward” effect, in residential real estate.
In recent times we witnessed it all-over partially causing home values to rise at an extraordinary pace and despite opposing market forces, and, at a quick glance, without a simple explanation of the root cause.
It refers to a situation where demand for housing is accelerated due to external factors, causing homebuyers to purchase homes sooner than they otherwise would and that they originally planned.
Some of the external factors could be: Rising Mortgage Rates, Inflation, Supply of New Construction and many more.
It could be used for the opposite trend, for homeselling rather than homebuying, with the same mechanism of homeowners acting upon sudden and compelling external events and factors that create a strong motivation to sell, in this case.
The same behavior can also be called forward-buying or, of course, Forward-Selling, and the actors Forward-Buyers or Forward-Sellers.
For more info, go to: Residential Real Estate Pull-Forward, Forward-Buying, Forward-Selling effects
Skip to content