Posted at July 28, 2021
Posted In Uncategorized
What’s happening in the housing market?
- Single Family Home Prices are skyrocketing. The National Average for the Median Price has surged to an astronomical 24.4% Year-Over-Year Change.
- Two main factors for this increase are the effects of covid and the particularly low-interest rates of last year.
- A change in demographics and the nationwide shortage in housing also add to creating the perfect storm for higher prices.
- While Single Family Home construction has significantly increased since the financial crisis it is still well-below the 50-year average.
- The difference in monthly payment between owning a median priced home compared to renting is now at its widest level since 2008 adding to the wealth gap.
- All these metrics combined with inflationary pressures now at hand that could very well mean no end in sight to the upward swing in Single Family Home pricing.
For more detail check out this new 5-minute video from John Chang, SVP of Research Services at Marcus & Millichap.
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