It was found that U.S. housing prices have soared by 47.1% since 2020.
Fox Business reported on the 13th local time that Resi Club, a housing market analysis company, recently analyzed the Case-Shiller National Housing Price Index and obtained these results.
This surpasses the 30.1% and 44.7% increases in home prices in the 1990s and 2020s, respectively.
In particular, this upward trend appears to be on the verge of exceeding the rate of increase in housing prices during the 2000s, when the real estate market was booming.
It soared by 47.3% during the same period since 2000, and by a whopping 80% before the housing market collapsed in 2007.
This price surge was analyzed as a result of a shortage of housing supply due to a lack of housing construction over the past few years, coupled with a rapid rise in mortgage interest rates and building material prices.
According to a separate report from real estate platform Realtor.com, housing supply has decreased by 34.3% compared to the typical size before the COVID-19 pandemic began in early 2020.
Rising mortgage interest rates over the past three years have also hindered the revitalization of the housing market.
Supply was further limited as homeowners tied to record-low mortgage rates, which were below 3% before the pandemic, were reluctant to sell, leaving prospective homebuyers with no choice.
The market predicts that mortgage interest rates will remain high this year.
Mortgage interest rates are expected to fall only when the Federal Reserve begins to cut interest rates, but it is unlikely that interest rates will return to the lowest interest rates during the pandemic, and as the slowdown in inflation has recently stalled, there is growing skepticism about the possibility of the Federal Reserve cutting interest rates this year. Visions are emerging.
Freddie Mac, a U.S. government-funded mortgage lender, announced on the 9th that the average interest rate for 30-year loans is 7.09%, which is lower than the high of 7.79% in the second half of last year, but still higher than the low of 3% during the pandemic.
A recent survey by real estate platform Zillow found that most homeowners said they would be twice as willing to sell their home if their mortgage interest rate were above 5%, but 80% of mortgage holders currently have interest rates below 5%.
“Market conditions for homebuyers are challenging, with few listings available and prices still rising,” said Ben Ayers, senior economist at insurance company Nationwide. “Despite strong demand, many first-home buyers are struggling with rising mortgage rates and “They are being excluded from the market due to rising (housing) prices,” he said.