While supply is ticking up, interest rates are down, and home value growth is slowing, homebuyers still face a major headwind in the spring market: a lack of affordability.
March 22, 2019
Photo: Unsplash/Devon Janse van Rensburg
While supply is ticking up, interest rates are down, and home value growth is slowing, homebuyers still face a major headwind in the spring market: a lack of affordability.
A recent survey from Realtor.com finds that almost half of homebuyer hopefuls are seeking homes in the $200,000 or less price range, though the current national median home price is about $295,000. In addition, home prices appreciated 7 percent annually as of March 1. The share of homes priced at or below $200,000 fell 7 percent annually in March, while homes valued at $750,000 or more had the most for-sale inventory growth, 11 percent year-over-year.
“The spring home buying season is an improvement over last year from an inventory perspective nationwide, but would-be buyers still face challenges," Chief Economist Danielle Hale of realtor.com said in a statement. "This year, shoppers are going to be grappling with their budgets, rather than competition from a horde of other buyers."
