Home prices rose 20.6% year-on-year in March 2022, the biggest increase in 30 years of record-keeping. joint center for housing studies Table of CoStar and CoreLogic Case-Shiller Home Price Index data.
Rent prices are also skyrocketing, further widening the property gap between owners and renters in the US, and pushing home ownership out of reach for nearly four million Americans over the past year. The annual income required to qualify for the median-priced home increased by $28,000 from the previous year, according to Harvard researchers,
But things may soon change. With an increasing number of potential buyers turning off the market, “sellers will eventually see the need to accept a lower price for their property,” Senior asset economist Matthew Pointon said, Despite mounting pressure on the housing market, mortgage rates have risen by more than 6% which could indicate that home prices are likely to begin to decline.
capital economics Predicts a 5% decrease in home prices in 2023, followed by a “gradual recovery” to 3% by 2024. As the housing market slows, real estate firms have begun laying off hundreds of workers as they anticipate a home recession and decline. Purchase
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Yet, with ongoing supply chain constraints, inflation, and initiatives by the Fed to keep it under control, home prices are still skyrocketing. And if the economy falls into a recession, the researchers warn that the spike of individuals priced out of ownership “will turn the recent uptick in housing insecurity into a ripple.”
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