More On: home prices
Home prices in the United States rose to a median price of $375,000 in March, the hottest housing market in 15 years.
According to the Wall Street Journal, home values set a new high across the country as a result of a combination of ultralow loan rates in 2020, restricted housing availability, and a rise in home sales during the COVID-19 lockdowns (WSJ).
According to the Wall Street Journal, the buying fever has subsided as the volume of home sales has returned to pre-pandemic levels, according to Lawrence Yun, chief economist for the National Association of Realtors (NAR).
U.S. home prices hit a record of $375,300 in March and analysts expect prices to climb even more, despite higher mortgage rates pushing some buyers out of the market #WSJWhatsNow https://t.co/z1W1SMwBi3 pic.twitter.com/0vSfIRlZKQ— The Wall Street Journal (@WSJ) April 21, 2022
According to Reuters, mortgage rates have risen to 5%, the highest level since 2011. According to the Wall Street Journal, Yun anticipates home sales to drop 10% in 2022 compared to last year due to the high rate.
According to CNBC, mortgage applications for house purchases fell 3% in mid-April and were down 14% from a year ago. (RELATED: Hunter Biden Is Living In A Malibu Mansion With Secret Service Protection Amid Tax Troubles)
According to the WSJ, "we definitely see a lot of serious, pre-approved purchasers who were ready to go only a month ago and are now not in the market," said Monika Prasai, a San Diego real estate agent.
The busiest season for home sales is usually spring. According to the WSJ, 40% of existing-home acquisitions take place between March and June.
"The number of individuals on the market has decreased, but so has the quantity of residences on the market," Navy Federal Credit Union corporate economist Robert Frick told the source. "I believe mortgage rates will start to become a factor if they rise much more, but I don't believe they are yet."
According to the WSJ, property listings for home sales of $950,000 were down 9.5 percent from 2021 at the end of March.
According to the Wall Street Journal, "in this market, you know there are hundreds of offers." Monique Nethercott, a recent house buyer from Springfield, Illinois, stated, "In this market, you know there are tons of offers." "You just have to accept the reality that you'll pay more than the quoted price."
Despite the fact that construction activity has increased due to high demand, it has been hindered by supply-chain challenges and manpower constraints, according to the outlet.