Posted on 07/20/2023 8:20:07 AM PDT by ChicagoConservative27
High home prices and climbing mortgage rates continue to hamper affordability, pushing prospective buyers’ monthly payments to their highest level on record, according to a new report.
Home prices posted their largest increase since December in a four-week period ending July 19, rising by 2.1 percent, the report from real estate brokerage Redfin showed.
The second straight price jump in the last five months moved up the sale price of a typical home to $382,500.
Rising prices, combined with stubborn mortgage rates that are nearing 7 percent, have pushed monthly payments for the typical home to a record high at $2,656.
Sales prices increased the most in Milwaukee, where they rose by 12.2 percent from a year ago, in the four-week period ending June 16.
(Excerpt) Read more at thehill.com ...
Right now inventory on sale is at a multi-decade low.
When the dam bursts it’s going to be epic. I’m keeping popcorn ready.
“When the dam bursts it’s going to be epic.”
Can you describe this means?
It think the poster means if there is a slight economic downturn and people suddenly start selling, the pricing for homes will collapse quickly.
Bidenomics is working!
When the levee breaks, I’ll have no place to stay.
No problem, just come to the table with a larger down payment.
> Can you describe this means?
Main support for prices is lack of inventory.
The hope for lower interest rates - thereby lowering the monthly payment - is another support. Historic measures of income don’t support current housing prices.
So, the market is currently in a standoff (indicated by low volume). There is little room for price increases, so once people (and investors) start thinking they should sell before the price goes down, the levee bursts.
Just my thoughts, I’m probably wrong ;-)
” The hope for lower interest rates - thereby lowering the monthly payment - is another support. Historic measures of income don’t support current housing prices.”
“There is little room for price increases, so once people (and investors) start thinking they should sell before the price goes down, the levee bursts.”
If you sell, you have to buy or rent.
Most people are locked in with low interest rates and cannot afford to sell.
.
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