Don’t Expect Home Prices to Go Down Anytime Soon, Say Experts
Year-over-year single-family home prices are skyrocketing!
Challenges in today’s Single-Family Home Market
“The National Association of Realtors (NAR) reported a record national median sales price of $419,300 for a single-family home in May.
‘We’re actually forecasting that home prices will continue to grow based on the lack of inventory and demand for home ownership,’ Jessica Lautz, NAR deputy chief economist and vice president of research, told The Epoch Times.
A $400,000 price tag translates to a $40,000 down payment—with the usual requirement of 10 percent of the home cost.”
Our Take
Affordable mortgage rates are not anticipated until 2025 (with initial Federal Reserve rate cuts rumored for September), while the low housing supply remains an ongoing issue. These factors together drive up home prices, making single-family homes unaffordable.
A viable short- to mid-term compromise may be exploring "build-to-rent" single-family or townhome communities. This option is preferable to being house poor or commuting long distances.
This is why we do new development. Let’s talk!
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Source: The Epoch Times, July 12, 2024