The housing market is finally catching a breath after a two-year sprint. A new report breaks down how the frenzy unfolded.
The national median listing price for active listings was $447,000 in May 2022, up 17.6% compared to last year, and an increase of 35.4% vs. May 2020, according to Realtor.com. “Unlike the previous run-up when loose credit and speculative buying fueled a housing bubble, the current home-price surge largely reflects years of under-building,” the report explained.
“Federal cash supports, student-loan payment deferrals, and the pickup in employment likely boosted the incomes of many young adults enough so that they could afford to form their own households,” the authors stated. Investors have been focused on the South and West, the report stated. In the last quarter of 2021, the highest investor share of home sales was posted in Atlanta, at 41%, followed by San Jose at 38%, Phoenix and Las Vegas at 36%.“In September 2021, investors bought 29% of the homes sold that were in the bottom third by metro-area sales price, compared with 23% of homes sold in the top third,” the report stated.
Don't panic, for the past 60 years they've been saying new home ownership is out of the reach of people. Yet? They keep building homes, they keep buying the home, and YES, the banks keep making money.
End student loan forbearance
And only 4% of those same markets saw income increases to keep up with those rising housing costs. I thought Marketwatch is supposed to be some kind of economics website?
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