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


Home prices have risen 14% compared to this time last year, and mortgage rates have increased the average monthly payment by 50% over the same period, so accessibility remains a key concern for to people who want to move.

Nearly half (49%) of sellers said they plan to sell their home for $ 500,000 or less, and 15% of them aspire to $ 200,000 or less, according to a report released Tuesday by realtor Realtor.com.

This year’s sellers are “looking to buy their next homes at more affordable prices,” the report notes, with more than half (53%) of sellers wanting to buy a property priced at $ 500,000 or less, and 17% looking for a property with a cost. $ 200,000 or less.

Approximately 29% of sellers trade upwards and 32% make a sideways price move. (This is the first year that Realtor.com has asked these specific questions.)

An encouraging sign

There are indications that the real estate market is slowing. New home sales fell in April for the fourth month in a row to the lowest level since the pandemic due to high prices and rising mortgage rates.

Mortgage rates rose from just 2.75% in the fall over a fixed 30-year period to more than 5.25% in mid-May. Low mortgage rates had made it easier for buyers to buy a home despite record prices.

“The distribution of sale prices points to an encouraging sign for many buyers who found last year’s real estate market very frustrating due to escalating prices,” the survey of more than 3,000 buyers said. home sellers.

“An increase in the number of homes for sale at affordable prices would be good news for the markets,” he said, adding that nearly a third of homeowners plan to sell their homes in the 500,000 to 1,000 exchange rate range. $ 000.

George Ratiu, senior economist and economic research manager at Realtor.com, said the report “offers hope” to sellers-buyers, who have been helped by the rise of remote work, which shows a power of important permanence.

“Many removal buyers are taking advantage of the new flexibility to use creative strategies, such as moving to an area that offers housing that meets their family’s needs without breaking their budgets,” he said.

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

Double-edged sword

However, switching to remote work is a double-edged sword: working from home also accounts for more than half of the 23.8% national increase in house prices between 2019 and November 2021. concluded an economic study published last week.

This rise in house prices has pleased homeowners who have been able and willing to sell, but it has also caused heartache for first-time first-time buyers who yearn to set foot on the property’s scale.

The average selling price rose to $ 450,600 last month from $ 435,000 and reached an all-time high. The average home price was even higher, at a record $ 570,300, underscoring that most properties for sale are on the more exclusive side.

In addition, nearly three-quarters of homeowners surveyed by Realtor.com who plan to sell their home in 2022 are also buying a home at the same time, said Ratiu, who said it adds “complexity to a task that is already a challenge. “.

“While sellers may charge record capital when they close their home, they also face higher prices and interest rates on their next home,” the report said.

The Dow Jones Industrial Index DJIA,
+ 0.20%,
S&P 500 SPX,
+ 0.64%
and Nasdaq Composite COMP,
+ 1.21%
All were lower on Wednesday in pre-market trading as fears of ongoing stagnation shook investors.

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

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