Results for: Home Prices

The affordability of housing in California has reached its lowest point in nearly 17 years due to a combination of rising home prices and elevated mortgage rates. Only 14% of California households could afford to purchase a median-priced home in the second quarter of 2024, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). This marks a significant decline from the first quarter of 2024 and the second quarter of 2023, and represents less than a third of the affordability peak in 2012.

Despite promises to reduce housing costs, the Biden administration’s policies have made homeownership unaffordable for many Americans. High government spending has contributed to inflation, and Biden’s anti-fossil fuel agenda has driven up energy prices. As a result, home prices are now at an all-time high relative to household income, and mortgage rates are rising rapidly.

Despite rising mortgage rates, strong demand and tight supply continue to push home values higher. The S&P CoreLogic Case-Shiller national home price index showed a 6.4% year-over-year increase in February, the fastest rate of growth since November 2022. The 10-city composite rose 8%, and the 20-city composite saw an annual gain of 7.3%. San Diego saw the biggest gain among the 20 cities in the index, with an 11.4% increase from February 2023. Chicago and Detroit both reported 8.9% annual increases, while Portland, Oregon, saw the smallest gain of just 2.2%. The Northeast region, which includes Boston, New York, and Washington, D.C., has been the best performing market for the past half year.

Mortgage demand is plummeting as interest rates continue to climb, leading to fears of a potential housing market crash. Mortgage applications dropped by 2.7% last week, driven by a jump in mortgage rates to 7.24%, the highest level since November. Applications to refinance fell even more dramatically, decreasing by 6% from the previous week. Purchase applications also saw a decrease of 1%, marking a significant 15% decline year-over-year. Despite the falling demand, home prices continue to rise, largely due to the limited inventory of available homes for sale. As a result, analysts believe that a housing market crash is unlikely in the near future.

According to a recent report by Las Vegas Realtors, the median price of existing single-family homes in Southern Nevada increased by 9.4% year-over-year to $465,000 in March. Condos and townhomes also experienced a price increase of 8.7% to $282,500. Despite the gains, prices remain below the all-time highs recorded in 2022. The housing market is showing signs of recovery after a slow 2023 due to tight supply and high mortgage rates. However, the supply of homes for sale remains low, which continues to put upward pressure on prices.

Home prices in Rhode Island and Massachusetts continue to surge, with single-family homes seeing double-digit increases year-over-year. In Rhode Island, the median sales price jumped 11.4% to $440,000, while in Massachusetts, prices also rose significantly. Despite a slowdown in sales activity, low inventory levels are keeping prices high. The condo market in Rhode Island is also experiencing growth, with median prices increasing by 15.64% to $370,000.