The real estate market in the United States is currently confounding expectations. Despite low overall demand, existing home prices are up 3.9% year over year. Although demand is near the 21st-century low, the limited availability of homes for sale is keeping prices high.
Several factors appear to be driving the market. Low mortgage rates are encouraging buyers, while a lack of incentives to build has left a gap in the number of homes for sale. This is especially true in rural areas, where limited demand has driven away many developers. The sudden economic downturn caused by the pandemic has also created an imbalance between supply and demand.
What we are seeing in the US right now is an extremely tight market, with a number of factors pushing prices up and demand down. This can have significant implications for both buyers and sellers of homes.
Key Points:
• Existing home prices are up 3.9% year over year despite near 21st-century lows in demand
• Low mortgage rates are encouraging buyers
• Limited incentives to build has left a gap in the number of homes for sale
• The sudden economic downturn caused by the pandemic has caused an imbalance between supply and demand
• Overall, an extremely tight market is driving prices up and demand down with significant implications for both buyers and sellers of homes
You can read this full article at: https://www.housingwire.com/articles/why-are-exisitng-home-prices-up-year-over-year/(subscription required)
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