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Will You Ever be Able to Afford a House?

Probably not, but it is nice to dream.

Inflation has cooled since its peak last summer. Airplane tickets are cheaper, natural gas is cheaper, even eggs are cheaper. But housing? It’s stubbornly expensive. 

The median home price has risen to $413,800–the second-highest price ever, after June 2022, according to data released Thursday by the National Association of Realtors. This is even as existing-home sales overall are declining.

“People are maybe wondering, ‘Oh, with the housing market down, maybe I can find some bargains,’ but that is not the case. It is very difficult to find a bargain,” said Lawrence Yun, chief economist for NAR.

Renters, too, are still feeling the pinch. Rental prices have risen 26% since February 2020.

The tough situation won’t last forever, but economists aren’t sure how long it will persist.

Even though the housing market is in a slump, there are some reasons buyers can be hopeful for the future. Prices are down from this time last year. 

While inflation is still higher than the Federal Reserve’s target of 2%, some economists believe inflation has peaked – as have home prices. 

“The Federal Reserve isn’t yet ready to declare mission accomplished with its battle against inflation, but there have been some positive signals on the inflation front,” said Bankrate senior economic analyst Mark Hamrick.

Once the Federal Reserve indicates it’s done raising rates, we could see mortgage rates decline too, Hamrick said.

Additionally, the tight supply in the housing market has benefitted home builders. Buyers looking for homes are increasingly turning to newly built houses.

This article was written by Erin Kenny at www.npr.org. The original article is here.

One thought on “Will You Ever be Able to Afford a House?

  • I wish I could at least rent an apartment. πŸ™

    Reply

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