Home sales and affordability are falling due to severely constrained inventory. As such, more government leaders are putting greater focus on the inventory crisis.President Joe Biden recently reiterated his administration’s focus on housing as part of its broader infrastructure push. He’s called for a “historic investment” in housing that could generate 2 million additional homes in the U.S. through new construction and rehabilitating exi
A shortage of homes for sale has forced more prospective buyers to rent. That is driving up prices in the rental market.The U.S. median rental price in June jumped 8.1% compared to a year ago, reaching $1,575, realtor.com® reports. Also, two-bedroom units saw the largest increase in rents at 10.2%, as the demand for more space continued to remain high.Rental prices in 44 of the largest 55 metros broke records last month. The largest gains were r
Housing affordability continues to decline as the hot real estate market fuels skyrocketing prices. Incomes aren’t keeping pace with the higher prices.The median family income rose by 1.2% in May while the monthly mortgage payment jumped by 20%, according to the National Association of REALTORS®’ Housing Affordability Index.Even as mortgage rates are down compared to a year ago—which has helped buyers save on borrowing costs—the median e
Mortgage rates continued to inch lower this week as home buyers get another chance at securing ultra-low borrowing rates. Freddie Mac reports the average 30-year fixed-rate mortgage averaged 2.90%.Home buyers can continue to benefit from low mortgage rates, particularly as home prices surge to a new record high of $350,300, Nadia Evangelou, senior economist at the National Association of REALTORS®, writes for the association’s Economists’ Ou
As baby boomers look to retirement, where are they likely to move to? Georgia may offer the best prospects, according to a new study by Bankrate. The state’s overall affordability is a big draw to retirees, offering a low cost of living and light tax burden. Those same reasons helped Florida and Tennessee nab the number two and number three spot, respectively, on Bankrate’s retirement locales rankings.Besides affordability, retirees are often
Seventy-seven percent of consumers say it’s a good time to sell a home—a record high, according to Fannie Mae’s Home Purchase Sentiment Index, a survey of 1,000 adults on their views of the housing market.They have plenty of reason to feel so upbeat: Existing-home sales prices were at a record high in May and up nearly 24% compared to a year earlier ($350,300), according to the National Association of REALTORS®. The higher home p
Home flipping is declining across the country, but some investors are banking on fast flips. They hope to turn properties around quickly to take advantage of the hot housing market.The gross profit on a typical U.S. home flip fell in the first quarter to $63,500, or about a 38% return on investment compared to the original acquisition price, according to ATTOM Data Solutions’ Q1 2021 U.S. Home Flipping Report. The gross flipping ROI reached its
Widespread shortages on building materials continue to prompt home builders to raise their prices. Material prices have increased by 26% over the past year for building the same house, according to National Association of Home Builders data. That’s put pressure on new-home prices: In May, the median price of a newly built home was 18% higher than a year ago, at $374,400.Material shortages have increased for appliances, paint, lumber,
As home listing prices break another new record, more homeowners are looking to take advantage and list their homes for sale. New listings in June rose 5.5% year-over-year and are up 10.9% over the prior month, according to a new report from realtor.com®.The uptick in new listings may give buyers more homes to choose from and could offer a hopeful sign for the real estate market.Still, the inventory challenges in the housing market are far from
Home buyers had another chance to snag lower rates this week. The 30-year fixed-rate mortgage averaged 2.98%, Freddie Mac reports.“Economic growth remains steady and is bolstering more segments of the economy,” says Sam Khater, Freddie Mac’s chief economist. “Although low and stable mortgage rates have kept the housing market booming over recent months, a deterioration in affordability and for-sale inventory has led to a market slowdown.
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