Affordability Rears its Head Again
Many affordable housing markets have seen a hike in home prices, making them a tough grab for the buyers, says Redfin.
Daryl Fairweather, Redfin’s Chief Economist, stated in a press release that “Home price growth this high is making the housing market especially difficult for first-time homebuyers right now. Rising prices are just one more reason for people to leave expensive urban neighborhoods behind.” “Price growth may slow in 2021, but even if it does, high prices are going to continue to make affordability a concern for buyers,” added Fairweather.
For the four weeks closing on Sep 6, the median home price sat at $319,171 on average. This is a 13% hike on the year-over-year chart. Such yearly gain hasn’t been reported for the last 7 years. Redfin reveals that 28% more homes have been sold compared to the same time, last year. This again is the biggest rise since Aug ‘15’.
About half the sellers have had to wait less than two weeks after putting their property on the market. This is 15% higher than last year and the highest that the percentage has been since Redfin started tracking the data.
New listings have risen to 86,986- this is a 9% hike on the yearly chart. Such a hike is unprecedented for any four weeks since the last month of 2015.