Home Buying Power: Where Are We Currently?
Sometimes it’s in the buyer’s hands, and sometimes it’s in the seller’s hands – but where is the real estate market now?
With low mortgage rates – buying power has increased by 6%. This helped boost contract signings by 1.5% in September, with contract signings up overall 3.9% year over year.
Experts aren’t expecting interest rates to make any sizeable changes, so they believe the median price of homes will have to be the key to changing housing affordability in the future. The median price of homes is also greatly affected by the shortage of homes available.
Lawrence Yun, the National Association of REALTORS® Chief Economist, believes that other ideas will need to be pushed to help increase inventory – such as “a greater use of modular, factory-constructed homes, converting old shopping malls or vacant office space into condos, and permitting more accessory dwelling units.”
Check out the NAR’s Infographic on home sales below:
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