High demand, inadequate supply, and historically low interest rates paint the picture for an ultra-competitive housing market which experts are calling “one of the worst” for first-time buyers, according to CNBC.
As the average home price in the U.S. continues to rise, financial advisors are cautioning potential buyers to wait, but inflated rates aren’t expected to drop for over a year.
Not only has the pandemic failed to cool the hot housing market, it has kicked it into higher gear. At the end of September, the average home price in the U.S. was $377,000, according to real estate broker Redfin. That’s up 14% from the same month last year and a staggering 30% from September 2019, when the average selling price for a home was $291,000.
“Interest rates are at historic lows, there is a lot of demand for houses in the pandemic and there aren’t enough houses for people to buy,” said Daryl Fairweather, chief economist at Redfin, noting that the last decade saw the fewest homes built in the U.S. since the 1960s.
“This could be the worst market for a first-time homebuyer that I’ve ever seen,” said CFP Sheryl Garrett. “Don’t be in such a hurry to buy a house.”
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