Currently, the median home price in the United States is approximately $368,000, which is a 6 percent increase from 2020 and almost a 20 percent increase from 2019. Despite the high housing prices, home buyers are still seeking out good deals and searching for ways to get into the market.
The recent rise in home prices is largely due to the fact that there are more people looking to buy homes than there is inventory. The demand for housing is being driven by a shift in the demographics of the American population, with more millennials and Gen Zers entering the housing market. Experts also believe that the demand for housing could be driven by people wanting to move away from urban areas during the pandemic. Additionally, low-interest rates are helping to fuel the growth in housing prices, as they make it more affordable for people to take out mortgages.
Fortunately, these high housing prices do not reflect all markets throughout the country. In some places, buyers are actually seeing a decline in home prices. According to Zillow, 18 of the largest U.S. markets saw home prices decrease throughout September, while 12 markets reported no change. The cities that experienced a decrease in home prices include Chicago, Miami, and Portland Oregon.
Home buyers in these markets now have an opportunity to get into the market at a lower price. However, these lower home prices come with their own set of challenges. Buyers in these markets should be aware of any potential issues that may arise from buying a home in a declining market, such as an increase in foreclosures or an inability to resell the property at a later date.
Overall, people are still looking for ways to get into the real estate market despite the high price tags. There are still bargains to be found, though buyers should be aware of any potential risks associated with buying in a declining market. Homeowners may want to consider investing in a specific market where prices are declining, if they are able to research the market conditions and understand the specific risks associated with it.
Summary:
Home prices have been on the rise in the US over the past few years, with the median home price currently standing at $368,000 – a 6% increase from 2020 and 20% from 2019. This can largely be attributed to an increase in demand for housing, driven by the demographic shift towards millennials and Gen Zers entering the housing market, as well as an increased desire to move away from urban areas during the pandemic. Low-interest rates have further contributed to the uptick in home prices, making it easier and more affordable for people to take out mortgages.
However, not all markets are in line with this trend – 18 of the largest US markets reported a decrease in home prices in September, with Chicago, Miami and Portland Oregon experiencing the biggest drops. These lower home prices present an opportunity for people willing to invest, but they must be aware of any potential risks associated with buying in a declining market such as an increase in foreclosures or difficulty reselling the property. Researching the local market and understanding the particular risks of a given area are essential before entering into the real estate market.
This article was contributed on Nov 15, 2023
