Can Homebuyers Handle the Housing Market’s Latest Cruel Twist?
Abstract
In September, the national median price for a home was $427,000-down 4.9% from an all-time high of $449,000 in June, according to a recent Realtor.com® report. As a result of these rising rates, as well as high home prices, today's homebuyers will pay about 80% more in their monthly mortgage payments than if they'd bought last September. Since some buyers can no longer qualify for loans and others have thrown up their hands and given up, there are fewer buyers in the market competing for homes and driving prices up even further. That's helped price growth to slow and allowed buyers to bring back contingencies such as requiring home inspections and to negotiate with sellers and builders on purchases. Sellers have been reluctant to put their homes on the market now that they can no longer name their price and are being forced to make concessions, even coming down in price. "Most sellers are trying to buy a home, so they're dealing with the same challenges buyers are facing, which are higher prices, higher mortgage rates. It's harder to make the math work," says Hale. "Sellers may not see multiple offers and offers above asking price. It may take them longer to sell a home." Home prices continue to soar in Miami Real estate prices continued to shoot up in Florida.