For the first time, the price of a single- family US home has crossed the $400,000 mark.
The price of a single- family US home increased by 14.2% in the second quarter of this year, compared with the same period last year. Wage growth is 10% and inflation is 8.5%.
"Home prices have increased at a pace that far exceeds wage gains, especially for low- and middle-income workers," said Lawrence Yun, chief economist at the National Association of Retailers.
The local job market performance and supply availability are distinguishing factors that drive local home price growth. US job market data shocked investors this month after creating more jobs than expected.
Last month, the US economy added 528,000 jobs. Job growth is positive and should be applauded, but supply constraints are making it hard to own a business.
He kept going. Prospective buyers received a small measure of welcomed relief after the national price decelerated. In places where home prices are affordable and jobs are being added, the recent dips in mortgage rates will bring more buyers to the market.
Americans haven't felt this bad about the housing market in years. The Fannie Mae Home Purchase Sentiment Index fell in July to its lowest level in a decade, with only a small number of consumers saying it's a good time to buy a home.
The housing market has been affected by the Fed raising interest rates. The cost of borrowing has become more expensive in recent times.
An economist told Insider that house prices are going to fall as demand for new houses increases. That mindset follows a drop in US mortgage applications which plummeted to their lowest level since 2000 in the week to July 15, creating more housing availability relative to the number of buyers.
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