The median home price has soared to $413,800, marking the second-highest price ever recorded, according to data released on Thursday by the National Association of Realtors (NAR). Despite overall declining existing-home sales, housing remains stubbornly expensive. The challenging situation is due to a combination of factors including a shortage of homes for sale and high interest rates. Zillow estimates that the country is lacking about 4 million houses, partly because fewer homes were constructed after the Great Recession. Inventory for single-family homes is currently at its lowest level since 1983. As a result, bidding wars are prevalent, with approximately a third of recent buyers paying above the asking price. Furthermore, buyers are facing higher mortgage rates, which are nearly 7% for a 30-year fixed mortgage, making homeowners hesitant to sell their current properties. This shortage of homes and higher mortgage rates has led to a drop in the number of homes sold. Sales have declined by 3% since last month and are down 18% compared to the same period last year. The rental market has also been turbulent, with rental costs rising by 26% since before the pandemic, according to CoreLogic. Though the rate of increase has slowed down, prices are still rising. However, there is some hope on the horizon for homebuyers. Prices are lower than a year ago, and some economists predict that inflation, which is currently above the Federal Reserve’s target of 2%, has already peaked. Once the Federal Reserve indicates that it will not raise rates further, mortgage rates could downward. Additionally, the tight supply in the housing market has benefited home builders, with buyers increasingly turning to newly built houses. While buying a home currently costs more than renting on average, the decision to rent or buy depends on various factors such as budget and location. Although homeownership remains a part of the American dream, potential buyers should carefully consider their circumstances before making a decision. If the right property is found, there may be no need to wait for lower prices or better mortgage rates.
NPR: Homebuyers Face Record High Mortgages and Prices
Denial of responsibility! Swift Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – swifttelecast.com. The content will be deleted within 24 hours.