“Unprecedented”: US Home Price Spiral Worries Policymakers
Ten years ago, the average home in Columbus, Ohio’s lush capital, was on the market for almost 100 days before it was sold. Today, similar properties sell in just 10 days.
Michael Jones, a real estate agent at Coldwell Banker Realty with over 20 years of experience in central Ohio, said: “It’s unprecedented.”
US policymakers are increasingly concerned about rising home prices for both homeowners and renters. World’s Widest Home Price Boom It will boost your living expenses for at least 20 years.
“Today, it’s harder to find an affordable home in the United States than at any time since the 2008 financial crisis,” US Secretary of Housing and Urban Development Mercia Fudge said in a recent parliamentary hearing.
According to the latest S & P Corelogic Case-Shiller index update, home prices in May rose 16.6% year-on-year nationwide. This is the largest increase in data over 30 years, up from 14.8% in April.
Real estate professionals and economists surveyed by Zillow expect price increases to peak this year and then decline.
“Roughly speaking, there is no danger of house prices falling due to tight inventories, but we expect prices to rise slowly by the end of the year,” Yun said.
“We’re currently receiving only two or three homes that should have received 20 offers,” said Daryl Fairweather, Chief Economist at Redfin.
But she added, “I’ve already seen demand start to stagnate,” but prices haven’t dropped significantly. This suggests that policymakers’ concerns about affordability are likely to continue.
Federal Reserve Board Chair Jay Powell recently said that today’s trends are clearly different from those ten years ago, ahead of the worst recession since the Great Depression, but affordable housing. I called the problem “a big problem”.
“House prices are rising at a high rate nationwide,” he told Parliamentary Commission last month.
read more
eminetra.co.uk
sounds more like permanent inflation trickling down unless prices collapse? |
