The prices on single-family existing home sales during the fourth quarter of 2023 were up in 86% of the nation’s metro markets, according to new data from the National Association of Realtors (NAR), which noted that 15% of the 221 tracked metro areas experienced double-digit price gains.
The national median single-family existing home price was up by 3.5% from a year ago to $391,700, while the monthly mortgage payment on a typical, existing single-family home with a 20% down payment was $2,163 – up 10% from a year ago. NAR noted that 34 markets recorded double-digit annual price appreciation during the fourth quarter. Less than one-fifth of markets (14%, or 32 of 221) experienced home price declines in the fourth quarter.
“Homeowners have benefited from housing wealth accumulation. However, many homebuyers have been shocked at high housing costs, with a typical monthly mortgage payment rising from $1,000 three years ago to more than $2,000 last year,” said NAR Chief Economist Lawrence Yun. “This doubling in housing costs for recent home buyers is not included in the official consumer price index inflation calculations and contributes to the sense of dissatisfaction about the economy.”
Among the major U.S. regions, the South posted the largest share of single-family existing home sales (45%) in the fourth quarter, with year-over-year price appreciation of 3.2%. Prices also climbed 7.3% in the Northeast, 4.7% in the Midwest and 4.2% in the West.
“Sales were restrained due to limited inventory,” Yun added. “But increased homebuilding, along with lower mortgage rates, will not only improve housing affordability but also help bring more homes onto the market in 2024.”
;
Someone needs to ask these private companies that now hold almost 50% of available housing for rent, what is their holding period for these properties? Can anyone project when these properties will become available for sale? How long are the tax write-off periods for, with each of these rental companies? We’d have better data on where the market is headed, if we had answers to these questions.
That is a red herring, to cover the costs of construction nearly doubling during the last administration, and other cost factors that Mr Trump caused.
While attributing rising housing costs solely to the construction doubling during the last administration and other factors associated with Mr. Trump’s policies might oversimplify the issue, it’s crucial to acknowledge the multifaceted nature of the problem. Understanding the intentions and strategies of private rental companies regarding property holdings and tax write-offs could provide valuable insights into future market trends and help address housing affordability concerns more effectively. By advocating for greater transparency in the real estate market, we can work towards comprehensive solutions that consider all contributing factors.
Thought they were starting to make these large companies sell back to real people. If they continue to allow these guys to buy every home it will force the political parties to get involved. You can’t take away every house to create monopolies to control the rental prices. It needs some type of regulation. I thought we had laws to protect us against monopolies. They are just figuring out ways around it.
They should not be cutting rates either.
Well we know none of these homes are in the West.