Is the Housing Market Turning in Favor for Homebuyers?
Housing affordability seems to have hit a plateau, at least, according to CoreLogic officials.
Although home prices have increased 2.3% from May to June, and 17.2% year-over-year, experts are predicting these prices could slow to 3.2%-gain by this time next year. Why?
Buyers aren’t wanting to front the prices anymore and are waiting for things to slow down. Which should, in time.
Frank Marshall, CoreLogic CEO and President, explains, “Home prices have been rising in the mid single-digits for some years now, and the recent surge to double digit price jumps reflect the convergence of exceptional demand persistent with low supply. Affordability will become a more acute issue for the foreseeable future.”
The real estate market saw a huge shift of buyer wants and needs when COVID-19 hit. Buyers are seeking lower density neighborhoods and more living space – which would explain why the previous “affordable locations” are now being pushed towards higher home prices.
We’ll have to keep an eye on the housing market to come, and if homebuyers are feeling as though the power is being tipped.
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