The housing market is hot right now — if you’re a seller.
Buyers, on the flip side, are having a harder time finding homes.
Americans are aware of the struggles they face in buying a home. More than 70% of U.S. adults believe the housing market is currently in a bubble, and more than half say it’s a bad time to buy a home, according to a survey of more than 7,000 adults from Momentive.
Price is a major factor that’s keeping potential buyers on the sidelines — some 38% said they have delayed or canceled plans to buy a home due to inflation. People of color were also more likely to push off a home purchase due to rising costs, the survey found.
“More scuttled or delayed plans to buy among these groups threatens to exacerbate already wide gaps in homeownership rates along racial and ethnic lines,” said Jon Cohen, chief research officer at Momentive.
In April, the median sales price for homes in the U.S. was $391,200, a nearly 15% increase from a year earlier, according to data from the National Association of Realtors.
At the same time, mortgage rates are also increasing, which means buyers with loans will pay more for them, as well, said Danielle Hale, chief economist at Realtor.com.
That can hurt younger consumers, as well as first-time buyers, according to Hale. It also means that homeownership as a path to building wealth is now out of reach for many.
“It’s a very competitive market for those who are shopping at the top of their budgets,” said Peter Murray, a realtor and the principal broker at Murray & Co. Real Estate in Frederick, Maryland. “There’s a lot of disappointments.”
Contact Valleywide Realty
Ready to buy a home in the Central Valley? We can help you find the right property! To get started, contact us today at (209) 831-9747 or click here.