The housing market has been in a frenzy during the pandemic, with prices going up as buyers bid more and more for a dwindling inventory. Potential buyers expecting a break this spring are unlikely to see one, as recent home prices continue to rise in double-digit percentages.
The average property price hit a record $ 392,000 in February, according to a new analysis by Realtor.com. This is an increase of 13% compared to the previous year and a jump of almost 27% compared to February 2020, just before the pandemic hit the United States, found its analysis.
Of course, list prices reflect what sellers expect to convince potential buyers to pay. Sale prices, however, also hit record highs in February: the average home sold for nearly $ 364,000 last month, a record, according to real estate firm Redfin. This is an increase of 16% over the previous year.
Home prices have risen during the pandemic due to a confluence of demographic trends, such as millennials moving into their first years of home buying and current homeowners deciding to stay in their homes. instead, which is reducing the number of properties for sale. To compete in a market with less inventory and more demand, buyers are raising prices by offering above the asking price as well as doing all in cash offers and even giving up contingencies such as home inspections.
Affordability is likely to remain an issue, especially for first-time home buyers in hot housing markets such as Austin, Texas or Las Vegas, said Realtor.com senior economist George Ratiu.
“Seeing this figure at an all-time high in February is a real sign that the spring season is really starting long before that,” Ratiu said.
“For me,” he added, “the real concern, and that’s a real challenge, especially for first-time home buyers, is that the current buyer of a mid-priced home, with a mortgage from the 3.89%, pay more than $ 300 a month, more on your mortgage than a year ago. “
Zillow predicts that house prices will rise by 11% in 2022
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The spring shopping season usually begins in March and April, but buyers and sellers may be on the rise earlier this year due to rising mortgage rates, Ratiu said. The reason for this could be that some buyers are looking to find a home and set a rate before going back up and further increasing monthly costs.
According to Freddie Mac, a 30-year fixed-rate loan averaged 3.76% during the week ending March 3. A year earlier, the average rate was 3.02%.
Realtor.com data found that the biggest price hikes on the list were in the cities of the South and West, including Miami, where prices rose by almost 32%, and Las Vegas, where the average list price increased by almost 40%.
“First-time buyers in these markets will face difficult conditions,” Ratiu noted.
Inventory issues
There are currently only about 250,000 homes for sale in the U.S. that are considered affordable for households with an annual income of $ 75,000 to $ 100,000, a sharp drop from the approximately 656,000 homes available before COVID-19[feminine pandèmia, va trobar una anàlisi recent de la National Association of Realtors.
El comprador típic per primera vegada té uns ingressos familiars d’uns 90.000 dòlars, però les persones de mercats cars o ciutats que assisteixen a una apreciació dels preus de dos dígits poden tenir més dificultats per trobar propietats dins dels seus pressupostos.
Fins ara, els nivells d’inventari no milloren a principis del 2022, cosa que s’afegeix al mal de cap de navegar pel mercat immobiliari. Els llistats actius, o el nombre d’habitatges en venda, van caure un 24% el mes passat, arribant a un mínim històric de 456.000 propietats, va dir Redfin.
Al mateix temps, les propietats es venen ràpidament, ja que els compradors competeixen per capturar una casa ràpidament, amb 6 de cada 10 habitatges sota contracte que reben una oferta en les dues primeres setmanes al mercat, va afegir Redfin.
“Per què això és preocupant [higher home prices] “It comes at a time when inflation is already taking a bigger bite at the monthly checks of most Americans,” Ratiu said. “First-time buyers will feel a lot of pressure.”
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