U.S. Potential Homeowners Received A little reassuring Home inventories increased 18.7% in June as Realtor.com released new data this month.
While supply has increased, so has the cost of owning a home. According to the report, the median active list was $ 450,000, up 16.9% year-on-year. And the supply is still about half that before the COVID-19 pandemic.
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Supply in big cities
Housing inventories in the United States’ 50 largest metropolitan areas increased by 27.9% in June from last year.
The metros with the largest inventories increased were Austin (+ 144.5%), Phoenix (+ 113.2%) and Raleigh (+ 111.7%). All of these are cities where housing demand surged during the COVID-19 pandemic.
Homes continue to sell relatively quickly. In the 50 largest cities in the United States, housing spent an average of 28 days on the market. This is two days less in the market compared to June 2021.
The share of newly listed small homes (up to 1750 sq ft) has declined year by year, but the share of homes over 1750 sq ft has increased, indicating that buyers are choosing to buy cheaper homes. Suggests.
Interest rates continue to affect purchases
The Federal Reserve continues to try to curb inflation by raising interest rates. This also leads to higher mortgage rates, making it more difficult for homebuyers to buy a home.
This also means that many Americans choose to wait for it to see if mortgage rates peak or begin to fall.
According to the midpoint of the expected target range of individual members, the Fed’s benchmark rate will be 3.4% at the end of the year. That could lead to more homes on the market in the near future, as Americans decide it’s not time to buy.
Worst situation in 15 years
Affordable prices hit record lows for the first time in 15 years, and median home prices hit record highs, according to data service ATTOM.
According to ATTOM data reports, the average American needs more than one-third of his wages to cover his homeownership, which is above the recommended 28%.
Of the 575 counties analyzed in the latest report, 560 were less affordable than the previous year. This is 97% of the county, compared to 69% in 2021. This is the highest point since 2007, just before the Great Recession and the collapse of housing.
Rick Sharga, Vice President of Market Intelligence at ATTOM, said:
“When interest rates almost double, homebuyers face monthly mortgage payments that are 40-50% higher than they were a year ago. This simply cannot be paid by many future buyers. It’s a payment. “
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This article is for informational purposes only and should not be construed as advice. It is provided without any kind of warranty.