Home prices are up 14% year-over-year, and mortgage rates are sending the average monthly payment 50% higher compared to a year ago, a costly combination forcing a large share of buyers to put off their plans for home purchases indefinitely. Nearly half (49%) of all sellers plan to sell their home at $500,000 and below, Realtor.com reports, while roughly one-third plan to sell their homes in the trade-up range of $500,000 to $1,000,000.
While sellers are trying to maintain their edge in a high-priced market, nearly three-quarters of Realtor.com respondents who say that they plan to sell their homes in 2022 are entering into the buying market. As prices are sent soaring, experts say that a slowdown could be just around the corner.
That rise in house prices has pleased those homeowners who have been able and willing to sell, but it has also caused heartache for millions of first-time buyers who yearn to get a foot on the property ladder.
The median sales price jumped to $450,600 last month from $435,000 and hit the highest level on record. The average home price was even higher at a record $570,300, underscoring that the majority of properties for sale are on the more upscale side.
“While sellers stand to cash out record-high equity upon closing on their home, they are also facing higher prices and interest rates on their next home,” the report said.