Home News The red-hot U.S. housing market ‘offers hope’ for buyers and sellers, according to this real-estate economist

The red-hot U.S. housing market ‘offers hope’ for buyers and sellers, according to this real-estate economist

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Home prices have risen 14% compared to this time last year, and mortgage rates have increased average monthly payments by 50% over the same period. As such, affordability remains an important concern for those considering moving.

Nearly half (49%) of sellers plan to sell their homes for less than $ 500,000 and 15% aim for less than $ 200,000, according to a report released Tuesday by real estate site Realtor.com. I am.

This year’s sellers are “trying to buy the next home at a more affordable price,” the report said, stating that more than half (53%) of sellers buy properties priced below $ 500,000. Aiming and 17% are looking for one costing under $ 200,000.

About 29% of sellers are trading and 32% are laterally price volatile. (This is the first year Realtor.com asked these specific questions.)

Sign of encouragement

There are signs that the housing market is slowing down.Sale of new homes Fallen in the 4th month in April Soaring prices and soaring mortgage rates have kept them at their lowest levels since the pandemic.

Mortgage rates jumped from 2.75% in the fall, which was fixed for 30 years, to over 5.25% in mid-May. The low interest rates on mortgages have made it easier for buyers to buy a home, despite record prices.

Opinion polls of more than 3,000 homebuyers and sellers show that “the distribution of selling prices is a promising sign for many buyers who found the housing market to be very frustrated by soaring prices last year. “.

“The increase in the number of affordable homes for sale is welcome news for the market,” said nearly one-third of homeowners selling homes in the $ 500,000 to $ 1 million trading range. He added that he was planning to do that.

George Ratiu, senior economist and economic research manager at Realtor.com, said the report “give hope” to sellers and buyers who have helped increase telecommuting.

“Many moving buyers are taking advantage of the newly discovered flexibility to adopt creative strategies such as: transfer In an area that provides homes that meet the needs of the family without breaking the budget, “he said.

(Realtor.com is operated by Move Inc., a subsidiary of News Corp., and MarketWatch is a unit of Dow Jones, a subsidiary of News Corp.).

Double-edged sword

However, the transition to remote work is a double-edged sword. Working from home accounts for more than half of the 23.8% nationwide rise in home prices from 2019 to November 2021. study Released last week.

The rise in home prices has pleased homeowners who are willing to sell, but it also causes heartache for millions of first-time buyers who crave to step into a real estate ladder. I did.

Median selling prices jumped from $ 435,000 to $ 450,600 last month, reaching record highs. Average home prices are even higher at a record high of $ 570,300, emphasizing that most of the properties for sale are on the higher side.

In addition, nearly three-quarters of homeowners surveyed by Realtor.com, which plans to sell homes in 2022, are also buying homes at the same time, Ratiu said, “adding complexity to already difficult tasks. I have. “

“Sellers are in a position to monetize record-high equity when closing homes, but are also facing rising prices and interest rates for the next home,” the report said.

(Jeffry Bartash, Washington, DC contributed to this report.)

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