Until rates start to come back down, this situation isn’t likely to improve. National housing prices dropped by 1% in Q1 2023 from the end of last year, with San Francisco the hardest hit seeing prices fall by 6.7%. That’s not to say prices haven’t come down at al. The need to move and refinance would mean a reset to a mortgage that is likely to be more expensive, putting it out of reach for many.īut the lack of sales means inventory is incredibly low, which has allowed prices to remain fairly stable. Potential first home buyers have been facing monthly payments hundreds, or even thousands, of dollars higher than they were a year or two ago, making it increasingly unaffordable to get on the housing ladder.īut the big differential between rates now and over the past couple of years means existing home owners are practically trapped as well. With the fastest rate hikes since the 1980’s the property market has ground to a halt. That’s a change that would be welcomed in the real estate sector. Regardless of the exact timing, it’s clear that the Fed’s rate hike cycle is almost surely coming to an end.
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