Home prices in the US rose 11% in the month of August, the biggest jump in over six years according to a new report. Compared to the same time last year, there are 22% fewer houses on the market, the median home price is $32,000 higher, and home sales are 10% higher.
Tough Housing Market Forces More Millennials To Live In Van Down By The River https://t.co/jJWdsPy8et— The Babylon Bee (@TheBabylonBee) September 18, 2020
“Even if buyers want to tap into low mortgage rates, which have hit a series of historic lows this year, many will find home prices out of reach,” said Danielle Hale, the chief economist for realtor.com. Another real estate reporter agreed:
“There’s little expectation that U.S. housing supply will improve in the near-term as sellers are even more reluctant to list homes during cold weather and over the holiday season. If strong demand persists, the imbalance could disadvantage home shoppers even more.”Beckie Strum, reporter for Mansion Global
Nicole Friedman, a reporter who covers housing for The Wall Street Journal, wrote that home prices could begin to plunge, similar to the 2008 recession, but so far, that hasn’t been the case. It is expected that despite future uncertainty, home prices will continue to rise for the near future. “The situation is different from the economic downturn in 2008, when home prices fell sharply as a housing bubble popped,” read an article from The New York Times. “We’re still seeing a huge sellers’ market,” noted realtor Colsie Searcy from Colorado Springs.
“Usually, a huge drop in demand would put downward pressure on prices; home sellers would be competing with each other to attract a limited number of buyers by dropping their asking price. But while housing demand has dropped substantially, housing supply also dropped in lockstep as potential home sellers pulled out of the market for many of the same reasons buyers are.”Jeff Andrews, Data Journalist for Curbed