In the 4th quarter of 2022, average prices for private homes in the United States increased by 4% year-on-year, reaching $378,700, according to a report by the National Association of Realtors (NAR). Houses have risen in price in 166 out of 186 markets. At the same time, a decrease in prices was recorded in 20 markets.
In 10 major cities, seven of which are located in Florida and the Carolinas, the cost of houses increased by more than 14.5%.
Throughout most of the pandemic, housing prices across the country have been moving up. In some places, such as Austin and Boise, real estate has risen significantly. In other regions, especially in the Midwest, prices rose more moderately. However, as mortgage rates were close to historic lows, buyers were more active.The situation changed last year when mortgage rates jumped as a result of the measures that the Federal Reserve was taking to curb inflation. According to NAR, by the end of 2022, sales of finished homes decreased by almost 18% compared to 2021, as potential buyers left the market. As a rule, due to falling demand, there is an oversupply of supply, which ultimately leads to lower prices. But this, in general, is not happening in the US housing market today. The reason, obviously, is that there is a shortage of housing for sale in the country.
Analysts believe that even despite forecasts for a reduction in sales in 2023, housing prices will remain stable in the vast majority of markets due to extremely limited supply.
Source: Edition