The current housing market is challenging for buyers, with home prices reaching a record high due to elevated mortgage rates and limited inventory.
1. 𝐋𝐨𝐰 𝐁𝐮𝐲𝐢𝐧𝐠 𝐚𝐧𝐝 𝐒𝐞𝐥𝐥𝐢𝐧𝐠 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐲: May, usually peak season, saw fewer home sales than April, with a 2.8% decline from last year. High mortgage rates deter both buyers and sellers.
2. 𝐇𝐢𝐠𝐡 𝐏𝐫𝐢𝐜𝐞𝐬: The median home price hit a record $419,300 in May. Affordable homes are scarce, pricing many buyers out of the market.
3. 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞𝐬: Although rates have slightly decreased recently (6.87% for a 30-year mortgage), they remain high compared to pre-pandemic levels, raising monthly payment costs.
4. 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐚𝐧𝐝 𝐍𝐞𝐰 𝐁𝐮𝐢𝐥𝐝𝐬: The number of homes for sale has increased by 18.5% from last year, but new home construction is slowing, which may exacerbate the shortage.
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