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Confused about the housing market? Here’s what’s happening
The slowdown in the otherwise red-hot housing boom has been stunningly swift. The U.S. housing market surged during the pandemic as homebound people sought new places to live, boosted by record-low interest rates. Now, real estate agents who once reported lines of buyers outside open houses and bidding wars on the back deck say homes are sitting longer and sellers are being forced to lower their sights. That has both potential buyers and sellers wondering where they stand. “As recession concerns weigh on consumer outlooks, our survey shows uncertainty has made its way into the minds of many buyers,” said Danielle Hale, chief economist at Realtor.com. Here are the major…
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What is happening in this housing market?
First-time buyers will be priced out The persistent lack of supply in today’s market combined with surging demand is driving up prices and pushing more prospective buyers to the sidelines. “All the metrics related to income and affordability in housing appear out of sync and the strange movement in the data is really caused by lack of supply,” said Lawrence Yun, chief economist at the National Association of Realtors. “We need to get the inventory up.” The typical home has seen a 40% increase in monthly payments over a year ago, said Yun, with a roughly 20% increase in home prices and another 20% in higher mortgage rates. “People’s incomes…