Over the last few months, the cost of living has increased sharply across the U.S. Consumers are paying sky-high prices at the gas pump and the grocery store, and overall housing costs in many U.S. cities are continuing to rise with no end in sight.
If you’re looking to buy a house in the near future, getting an affordable mortgage could also become more difficult. As the Federal Reserve attempts to battle inflation, mortgage rates are expected to increase faster than initially expected. As prices for homes in desirable areas continue to set records, homebuyers could face an even tougher market.
When mortgage rates go up, it means that many potential home buyers get priced out of the market. Even a mortgage rate increase of just 2% can equate to a significantly higher monthly payment. Coupled with the fact that home prices are already through the roof, it has made home buying much more expensive and less attainable for many Americans.
In addition, it’s important to consider other costs associated with homeownership, like home insurance. The cost of homeowners insurance depends largely on the state you live in, which contributes to the cost of living in various locations.
Key housing market trends
Most prospective home buyers know that the U.S. housing market is booming. Even though real estate experts claim the seller’s market is expected to continue, there is still an opportunity to purchase residential properties. Here are a few recent statistics on the current housing market:
Bankrate insights
- As of April 2022, home prices were up 15.5% compared to the same time last year. Today, houses are selling for a median price of $424,405. (Redfin)
- The average number of homes sold is down 12.4% year-over-year. There were 550,423 homes sold in April 2022, compared to 628,450 homes sold in April 2021. (Redfin)
- For a 30-year fixed-rate mortgage, the national average rate is currently 5%, which is down 1.9 points year-over-year. (Redfin)
- In April 2022, almost 60% of homes sold for more than the listing price. For comparison, only 8.4% of homes that sold had price drops. (Redfin)
- There were 1,332,428 homes for sale in the U.S. as of April 2022. That figure is down more than 10% year-over-year. (Redfin)
- The median number of days a house is on the market is 18 days. (Redfin)
- As of April 2022, new home sales declined for the third consecutive month. (U.S. HUD)
- Real estate inventory is increasing. The number of new homes for sale at the end of March 2022 was about 407,000 units, …….
Source: https://www.bankrate.com/insurance/homeowners-insurance/worst-states-for-home-insurance/